Net Book Value Per Share Formula

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.

Net book value per share formula. Book value per share conclusion the book value per share is the minimum cash value of a company and its equity for common shareholders. 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. If the value of bvps exceeds the market value per share the.

Total equity preferred equity and total outstanding shares. It is calculated by. 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.

Accumulated depreciation here means total depreciation charged or accumulated by the company on its assets till the date of the calculation of the net book value of the asset. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. Net income on a per share basis is referred to as eps or earnings per share.

The formula for calculating nbv is as follows. Let s assume that the company jack ltd purchased plant and. Shareholders equity preferred shares.

Roe is net income divided by stockholder s equity. As shown at the top of this page book value per share is expressing stockholder s equity on a per share basis. Accumulated depreciation per year depreciation x total number of years.

Total number of outstanding shares. Book value per share bvps takes the ratio of a firm s common equity divided by its number of shares outstanding. Book value per share is determined by dividing common shareholders equity by total number of outstanding shares.