Formula de book value per common share

In general, net asset value per share is the price an investor would receive when selling a funds shares back to the fund. The price to book ratio p b ratio is a ratio used to compare a stocks market value to its book value. After such modification we get the following widely used formula to calculate book value per share. 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. How to calculate stockholders equity for a balance sheet stockholders equity is the book value of shareholders interest in a company. 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 common share financial definition of book. In depth view into book value per share including historical data from 1997, charts, stats and industry comps.

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 is a key measure that investors use to gauge a stocks valuation. 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. Book value per share calculator for common stock finance. Book value of equity per share bvps is a ratio that divides common equity value by the number of common stock shares outstanding. It is calculated by dividing the current closing price of.

Book value per share formula how to calculate bvps. How to calculate stockholders equity for a balance sheet. Should the company dissolve, the book value per common share indicates the dollar value remaining for common shareholders. Calculate book value per share from the following stockholders equity section of a 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. Book value per share is usually used to compute the value or price per share of a companys stock during liquidation.

Edspira is your source for business and financial education. How to calculate the implied value per share of common equity. How to calculate the implied value per share of common. 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. This makes sense because equity represents the net assets of a business. Book value per share is a widely used stock evaluation measure. Net asset value per share is similar in concept to book value per share for other types of. 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. This video explains how to calculate earnings per share eps and uses the formula to solve an example problem.