Market To Book Value Formula
Book value per share will be bvps 495 61 book value calculator.
Market to book value formula. You can use this book value calculator. The market price per share is simply the current stock price that the company is being traded at on the open market. It is important to understand the market to book value ratio when it is less than 1 and greater than 1.
The market to book ratio is calculated by dividing the current closing price of the stock by the most current quarter s book value per share. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. Total assets total liabilities number of shares outstanding.
Formula and calculation of p b ratio in this equation book value per share is calculated as follows. 1 market to book ratio formula market value of stock book value per share on the other hand it can also be calculated by dividing the market capitalization by the total book value or tangible net worth of the company. Therefore the calculation of book value per share will be as follows bvps total common shareholders equity preferred stock number of outstanding common shares 2 93 491 00 cr 592 18 cr.
Market to book ratio is calculated using the formula given below market to book ratio market capitalization book value market to book ratio 821979400000 117892000000 market to book ratio 6 97. Where net book value total assets total liabilities. Market to book ratio formula.
The book value per share is a little more complicated. The formula is represented as 2 market to book ratio formula market capitalization total book value. Here s the formula of price to book value price to book value ratio market price per share book value per share.
Market capitalization net book value. Market to book value ratio 20 1 00 000 1 500 000 2 000 000 1 500 000 1 33. Book value of equity formula it is calculated by adding the owner s capital contribution treasury shares retained earnings and accumulated other incomes.