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how do you calculate book value on a balance sheet. On Google Finance we see that their balance sheet shows equity of 425 billion. The term book value is a companys assets minus its liabilities and is sometimes referred to as stockholders equity owners equity shareholders equity or simply equity.
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In our equation the market value is 867 billion which we divide by the 425 billion shareholder equity line. You can find these figures on the companys balance sheet. HPQ is worth 867 billion.
We can see in the above balance sheet of Ms XYZ Corporation the Total long-term Debt is USD 200000 and Notes Payables is USD 10000.
Dividing its share price by its per-share book value. The formula for calculating NBV is as follows. Subtract the liabilities from the assets. Assume for example that you have assets of 100000 and liabilities of.
