Mastering Book Value of Equity Per Share (BVPS) for investment valuation with The Strategic CFO®.
The equity formula is: Number of shares issued x Share price per share = Total amount of equity The equity equation is: Total amount of cash contributed by investors + Total amount of cash contributed by owners + Total amount of money raised from additional stock sales - Total amount spent...
Market Value Per Share Formula The market value per share can be derived by rearranging the formula. The market value per share, or equity value per share, is equal to the market capitalization divided by the total number of diluted shares outstanding. Market Value Per Share = Market Capitaliza...
Equity Multiplier Formula Equity multiplier formula is relatively simple. It’s calculated by dividing a firm’s total assets with total equity. Total assets are on a company’s balance sheet, while total equity is on a company’s balance sheet or in its shareholder’s equity section. How to...
How to Calculate Equity Value Equity Value Formula Equity Value vs. Book Value of Equity: What is the Difference? Equity Value vs. Enterprise Value: What is the Difference? Equity Value Example: Apple (NASDAQ: AAPL) Equity Value Calculator â Excel Template Equity Value Calculation Exam...
Book value per share (BVPS) The value available to common shareholders divided by the total number of outstanding shares in a corporation is known as book value per share (BVPS). Total equity less preferred equity divided by the number of outstanding shares is the BVPS formula. ...
The equity multiplier formula is calculated by dividing total assets by total stockholder’s equity. Both of these accounts are easily found on the balance sheet. Analysis The equity multiplier is a ratio used to analyze a company’s debt andequityfinancing strategy. A higher ratio means that mo...
The formula for book value per share = book value of equity / total number of outstanding shares Taking the above example of Apple Inc., we can calculate the book value per share as follows: Book Value per Share = US$ 134.05 billion/ 5.126 billion shares = US$ 26.15 ...
You can calculate a company's BVPSusing MicrosoftExcel. First, enter the value of acommon stock,retained earnings, and additional paid-in capital into cells A1 through A3. Then, in cell A4, enter the formula "=A1 + A2 + A3". This yields the value of common equity. Then, enter...
The following formula and calculation can be used to determine the equity of a firm, which is derived from theaccounting equation: Shareholders’ Equity=Total Assets−Total LiabilitiesShareholders’ Equity=Total Assets−Total Liabilities This information can be found on the balance sheet, where thes...