Formula For Book Value Per Share

Calculate book value per share from the following stockholders equity section of a company.

Formula for book value per share. Book value per share total common stockholders equity preferred stock number of common shares. If the value of bvps exceeds the market value per share the. 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.

That is the amount that ordinary shareholders will receive when the company is liquidated. Bvps frac total shareholder equity preferred equity total outstanding. This figure represents the minimum value of a company s.

The book value per common share formula below is an accounting measure based on historical transactions. The book value per share is calculated by dividing a company s total equity value by its total number of shares outstanding. The preferred stock shown above in the stockholders equity section is cumulative and dividends amounting to 48 000 are in arrears.

The book value per share is the minimum cash value of a company and its equity for common shareholders. Book value per share. The market price value calculated based on the net value of the enterprise is divided by the total share float is the book value per share.

The formula for book value per share requires three variables. Total outstanding shares total number of shares issued shares as treasury stock. 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.

Shareholders equity preferred shares. Total number of outstanding shares. 2 576 000 800 000 48 000 100 000 shares 1 728 000 100 000 shares 17 28 per share of common stock.