Modified Book Value Formula

The modified book value method works by adjusting the net worth of a company s assets and liabilities to obtain their fair market value fair value fair value refers to the actual value of an asset a product stock or security that is agreed upon by both the seller and the buyer.

Modified book value formula. Book value of assets formula. Book value of assets is defined as the value of an asset in the books of records of a company or institution or an individual at any given instance. Book value may also be.

The formula for calculating the book value per share is given as follows. 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 asset definition.

Book value per share will be bvps 495 61 book value calculator. Formula for book value per share. For companies it is calculated as the original cost of the asset less accumulated depreciation and impairment costs.

Using the period end amount which includes short term events may. You can use this book value calculator. Modified book value is one of the several valuation methods used by analysts and investors to assign a value to a company.