Stockholders Equity Book Value Per Share Formula

1 776 000 100 000 shares 17 76 per share of common stock 2.

Stockholders equity book value per share formula. The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets. Book value of share of the company is important for analysis. Keep in mind the shareholders interest is a residual one.

This figure represents the minimum value of a company s. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. Book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes examples of book value of equity calculations with excel template example 1.

Stockholders equity aka shareholders equity is the accounting value book value of stockholders interest in a company. If company has issued common as well as preferred stock. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares.

Stockholder s equity is used for the calculation of book value of shares of the company. From stockholders equity one can get a clear picture of whether a company has sufficient assets to repay its debt whether a company can survive in the long run. Calculate book value per share from the following stockholders equity section of a company.

Book value of equity also known as shareholder s equity is a firm s common equity that represents the amount available for distribution to shareholders. It is calculated by multiplying a company s share price by its number of shares outstanding whereas book value or shareholders equity is simply the difference between a company s assets and liabilities. After such modification we get the following widely used formula to calculate book value per share.

Book value per share. The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity. This means if the company dissolves the shareholders will receive an amount per share as per book value per share.