Find Book Value Formula

The book value of a business is found by subtracting its total liabilities from its total assets.

Find book value formula. Total equity preferred equity and total outstanding shares. Roe is net income divided by stockholder s equity. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes.

Book value per share will be bvps 495 61 book value calculator. Net income on a per share basis is referred to as eps or earnings per share. The book value per share is the minimum cash value of a company and its equity for common shareholders.

As shown at the top of this page book value per share is expressing stockholder s equity on a per share basis. The formula is the company s assets minus liabilities intangible assets and the value of preferred stock. 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 result tells you what the tangible worth equals after liabilities are subtracted from tangible assets. Generally businesses are instead valued at market value which incorporates future earnings intangible assets and other factors to arrive at an estimated worth. See how to calculate the market value of a company for more.

The formula for calculating book value per share is the total common stockholders equity less the preferred stock divided by the number of common shares of the company. To find the equity you should subtract the company s liabilities from its assets. You can use this book value calculator.

You could certainly calculate the book value of a personal asset like a car. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. B p p s t n.