Formula for book value of shares

Book value per share is a widely used stock evaluation measure. Book value per share is also used in the return on equity formula, or roe formula, when calculating on a per share basis. It expresses the minimum value that would be available. The formula for book value per share is to subtract preferred stock from stockholders equity, and divide by the average number of shares. Roe can be calculated by dividing stockholders equity from net income. Suppose a company x has book value per share as rs. Therefore, book value per share book value shares outstanding. Mostly, the book value is calculated for common stock only. 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 total common shareholders equity preferred stock number of. Book value per share formula calculator excel template. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. The formulas and examples for calculating book value per share with and without preferred stock are given below.

A companys book value of equity per share bvps is the minimum value of its equity and is found by dividing total common stock by the number of the companys outstanding shares. The book value per common share formula below is an accounting measure. The book value per share formula is used to calculate the per share value of a. The formula for book value per share is to subtract preferred stock from stockholders equity, and divide by the average number of shares outstanding. The book value of common equity in the numerator reflects the.

Enterprise value ev is a measure of a companys total value, often used as a comprehensive alternative to equity market capitalization. What is book value per share and how can it help you in. Book value per share bvps is the minimum cash value of a company and its equity. Book value per share formula with calculator finance formulas. How to figure the book value of bank stock finance zacks. 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. 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. Book value per share formula calculator excel template educba. Now, we can calculate book value per share for anand pvt ltd by using the book value per share formula. The second part is to divide the shareholders equity available to equity stockholders by the number of common shares. Pricetobook ratio pb ratio definition investopedia.

Book value per share tells investors what a banks, or any stocks, book value is on a per share basis. The presence of preferred stock in the total stockholders equity, however, has a significant impact on the calculation. Book value per share formula above assumes common stock only. Roe per share net income per share or epsbook value per share. 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. Book value per share formula, calculator and example. Book value of equity formula, example how to calculate. Finally, to solve for the ratio, divide the share price by the book value per share. Find the latest book value per share for microsoft corporation msft. To arrive at this number, subtract liabilities from assets. Book value per share formula how to calculate bvps. Book value formula calculates the net asset of the company derived by total of.

In the absense of preferred shares, the total stockholders equity is used. Book value of equity meaning, formula, calculation, limitation, p. The book value of equity more widely known as shareholders equity is the amount remaining after all the assets of a company are sold and all. Generally, the market price of shares, grow at a similar rate as its book value per share. Book value per share bvps overview, formula, example. Book value per common share bvps definition investopedia. Net income on a per share basis is referred to as eps, or earnings per share. Book value per share financial ratio the balance small business. Find the latest book value per share for adidas ag addyy adidas ag addyy book value per share zacks.