What is Book Value Per Share (BVPS)?BVPS is also known as the Book Value of Equity Per Share. It represents the net asset value of a company’s shareholders’ equity, and it’s calculated by dividing the total shareholders’ equity by the total number of outstanding shares. ...
Mastering Book Value of Equity Per Share (BVPS) for investment valuation with The Strategic CFO®.
For the purpose of analysis, we divide the book value of equity by the total number of shares to make the book value per share. Book value per share represents the firm’s equity on a per-share basis. This means if the company dissolves, the shareholders will receive an amount per share...
Book Value of Equity (BVE) = Shareholders Equity – Preferred Equity As suggested by the name, the “book” value per share calculation begins with finding the necessary balance sheet data from the latest financial report (e.g. 10-K, 10-Q). Book Value Per Share Formula (BVPS) The formu...
Book value per share (BVPS) is a measure of value of a company's common share based on book value of the shareholders' equity of the company. It is the amount that shareholders would receive if the company dissolves, realizes cash equal to the book valu
Book Value Per Share Formula The book value per share formula is very simple. All you need to do is divide a company’s total equity by the number of shares outstanding. The exact formula is as follows: Book value per share can vary widely from one company to the next. For example, ...
In theory, the book value of equity should represent the amount of value remaining for common shareholders if all of the company’s assets were to be sold to pay off existing debt obligations. Book Value of Equity Formula (BVE) The formula for the book value of equity is equal to the di...
The book value per share (BVPS) is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. When compared to the current market value per share, the book value per share can provide information on how a company’s stock is valued. If...
Book value per share (BVPS) is the ratio of equity available to common shareholders divided by the number ofoutstanding shares. This figure represents the minimum value of a company's equity and measures thebook valueof a firm on a per-share basis. Key Takeaways Book value per share (BVPS...
Equity Market Value vs. Book Value Due to accounting procedures, themarket value of equityis typically higher than a security's book value, resulting in a P/B ratio above 1.0. During times of low earnings, a company's P/B ratio can dive below a value of 1.0. ...