Total Book Value Of Equity Formula

For healthy companies equity value far exceeds book value as the market value of the company s shares appreciates over the years.

Total book value of equity formula. Book value us 375 32 billion us 241 27 billion us 134 05 billion. Formula to calculate total equity of a company equity formula states that the total value of the equity of the company is equal to the sum of the total assets minus the sum of the total liabilities. 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.

The formula to calculate market value of equity is as follows market value of equity market price per share x total number of outstanding shares let us understand it with an example as on 18th april 2018 the share price of walmart is us 87 89 then its market value of equity is. Mathematically it is represented as book value of equity formula owner s contribution treasury shares retained earnings accumulated other incomes. T4 book value of equity total liability.

Calculate book value of equity by subtracting a firm s total liabilities from its total assets to arrive at stockholders equity. There is a change of definition for t4 when the firm is a private firm. You can find these figures on the balance sheet.

If we apply it to the formula book value of equity total assets total liabilities. For the purpose of analysis the book value of equity is further divided by a total number of shares to make book value per share. For example in apple s 1q report released february 1 2018 the company reported total assets of 406 794 billion and liabilities of 266 595 billion.

Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. The book value of equity is equal to total assets minus total liabilities preferred stocks and intangible assets. Book value may also be.

This figure represents the minimum value of a company s. 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 equity also known as shareholder s equity is a firm s common equity that represents the amount available for distribution to shareholders.