Net Book Value Per Share Calculation

One of the metrics that you could evaluate is the net worth per share or book value.

Net book value per share calculation. Accumulated depreciation per year depreciation x total number of years. 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.

Net book value original asset cost accumulated depreciation. When determining whether you want to invest in a company you may use financial ratios and calculations based on information from its financial statements to help make your decision. Calculating net book value.

Net asset value per share navps is an expression for net asset value that represents the value per share of a mutual fund an exchange traded fund etf or a closed end fund. 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 price to book value is the stock price per share divided by the book value per share.

The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Based on the above formula calculation of book value of equity of rsz ltd can be done as 5 000 000 200 000 3 000 000 700 000 8 900 000 therefore the company s common equity is 8 900 000 as on the balance sheet date. This tells you.

The book value per share is considered to be the total equity for common stockholders which can be found on a company s balance sheet. Book value per share bvps is a measure of value of a company s common share based on book value of the shareholders equity of the company. Sample calculation of net 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. When it reaches the end of its useful life the nbv should be equal to its salvage value.