Formula de book value per common share

The booktomarket ratio is used to find the value of a company by comparing its book value to its market value, with a high ratio indicating a potential value stock. The book value per share may be used by some investors to determine the equity in a company relative to the market value of the company, which is the price of its stock. If all of the assets were sold off and all of the liabilities were paid off, the shareholders would be left with the equity. Be sure to use the average number of shares, since the periodend amount may incorporate a recent stock buyback or issuance, which will skew the results. Book value per common share financial definition of book. How to calculate the implied value per share of common. This video explains how to calculate earnings per share eps and uses the formula to solve an example problem. It is calculated by dividing the current closing price of. Book value per share calculator for common stock finance. In depth view into book value per share including historical data from 1997, charts, stats and industry comps. Investors can analyze a companys profitability by calculating the implied value per share before purchasing common stock. Book value per share is a widely used stock evaluation measure. Book value is a key measure that investors use to gauge a stocks valuation. Book value per common share is a measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly.

Book value per common share or, simply book value per share bvps is a method to calculate the pershare value of a company based on common shareholders equity in the company. The formula for book value per share is to subtract preferred stock from stockholders equity, and divide by the average number of shares outstanding. This makes sense because equity represents the net assets of a business. How to calculate stockholders equity for a balance sheet. View book value per share for tot access over 100 stock metrics like beta, evebitda, pe10, free cash flow yield, kz index and cash conversion cycle. Book value per share formula calculator excel template. Should the company dissolve, the book value per common share indicates the dollar value remaining for common shareholders. Net asset value per share is similar in concept to book value per share for other types of. Book value per share formula how to calculate bvps.

Book value of equity per share bvps is a ratio that divides common equity value by the number of common stock shares outstanding. Online finance calculator which helps to calculate the book value per share from the values of stack holders equity, preferred stock and total outstanding shares. If company has issued common as well as preferred stock. The price to book ratio p b ratio is a ratio used to compare a stocks market value to its book value. Book value per share is usually used to compute the value or price per share of a companys stock during liquidation. How to calculate stockholders equity for a balance sheet stockholders equity is the book value of shareholders interest in a company. After such modification we get the following widely used formula to calculate book value per share. How to calculate the implied value per share of common equity. In general, net asset value per share is the price an investor would receive when selling a funds shares back to the fund. Edspira is your source for business and financial education. Book value per common share bvps is a formula used to calculate the per share value of a company based on common shareholders equity in the company. Calculate book value per share from the following stockholders equity section of a company.