How To Calculate Book Value Of Equity Shares

Book value total common shareholders equity preferred stock number of outstanding common shares.

How to calculate book value of equity shares. This figure represents the minimum value of a company s. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. How to calculate book value.

Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. It is calculated by multiplying a company s share price by its number of shares outstanding whereas book value or shareholders equity is simply the difference between a company s assets and liabilities. 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.

Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes. Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company. Calculate book value of equity by subtracting a firm s total liabilities from its total assets to arrive at stockholders equity.

Book value may also be. Roe is net income divided by stockholder s equity. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

You can find these figures on the balance sheet. Net income on a per share basis is referred to as eps or earnings per share. 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 us 134 05 billion 5 126 billion shares us 26 15. As shown at the top of this page book value per share is expressing stockholder s equity on a per share basis. The formula for book value per share book value of equity total number of outstanding shares taking above example of apple inc we can calculate the book value per share as follows.