Equity Book Value Per Share Formula

Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes.

Equity book value per share formula. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. Investors need to look at both the book value and market value of the share. While this is usually found on a balance sheet it is helpful to know how to retrieve this value yourself.

This figure represents the minimum value of a company s. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. The equity is the total number of assets after liabilities are subtracted.

Book value per share formula of utc company shareholders equity available to common stockholders number of common shares. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity.

When compared to the current market value per share the book value per share can provide information on how a company s stock is valued. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Book value per share formula bvps dfrac total.