Formula For Book Value Per Common Share

The formula for calculating the book value per share of common stock is.

Formula for book value per common share. The book value per share is considered to be the total equity for common stockholders which can be found on a company s balance sheet. Roe is net income divided by stockholder s equity. Current assets 70 000.

Book value per share is determined by dividing common shareholders equity by total number of outstanding shares. Shareholders equity preferred shares. 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.

Book value per share formula example 3. If company has issued common as well as preferred stock. 1 776 000 100 000 shares 17 76 per share of common stock 2.

Net income on a per share basis is referred to as eps or earnings per share. Book value per share shareholders equity preferred equity total outstanding common shares. Book value per share of jagriti group of companies is 25.

Book value per share 1 25 000 5 000. Book value per share. Book value per share total common stockholders equity preferred stock number of common shares.

Calculate the book value per share for anand group of companies using the following extracts available. The formula for book value per share requires three variables. Total number of outstanding shares.