Formula For Calculating Book Value Per Share
Do the calculation of book value of equity of the company based on the given information.
Formula for calculating book value per share. Book value per share of jagriti group of companies is 47 14. Shareholders equity preferred shares. Formula to calculate price to book value.
Book value per share idr100 000 idr10 000 50 000 idr 1 8 per share. Why use average shares outstanding. Total number of outstanding shares.
The equity is the total number of assets after liabilities are subtracted. From the information we can calculate the book value per share as. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis.
It can deflect the results you get. If the investors can find out the book value of common stocks she would be able to figure out whether the market value of the share is worth it. The book value per share is calculated using historical costs but the market value per share is a forward looking metric that takes into account a company s earning power in the future.
Now by using the below formula we can calculate book value per share. Book value per share. Book value per share is determined by dividing common shareholders equity by total number of outstanding shares.
Outstanding the formula requires you to know the company s total equity. Book value per share formula of utc company shareholders equity available to common stockholders number of common shares. Investors need to look at both the book value and market value of the share.