How To Find Book Value Per Share Formula

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.

How to find book value per share formula. The book value of a share of stock is represented as book value per share. If the value of bvps exceeds the market value per share the. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.

The book value per common share formula below is an accounting measure based on historical transactions. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. Here s the formula of price to book value price to book value ratio market price per share book value per share.

Book value per share shareholder s equity preferred equity total outstanding common shares. To find the equity you should subtract the company s liabilities from its assets. Market value per share is.

The book value per share is the minimum cash value of a company and its equity for common shareholders. Book value per share 47 14. Investors need to look at both the book value and market value of the share.

Book value per share of jagriti group of companies is 47 14. Total assets total liabilities number of shares outstanding. The price to book value ratio p b formula is also referred to as a market to book ratio and measures the proportion between the market price for a share and the book value per share.

Formula and calculation of p b ratio in this equation book value per share is calculated as follows. Book value per share 2 10 000 45 000 3500. This number is determined by dividing the company s total amount of stockholders equity by the number of outstanding shares of common stock.