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how to calculate book value equation. When compared to the current market value per share the book value per share can provide information on how a companys stock is valued. Heres the formula of price to book value Price to Book Value Ratio Market Price Per ShareBook Value per Share.
Formula and Calculation of PB Ratio In this equation book value per share is calculated as follows. Book Value of Equity Formula It is calculated by adding the owners capital contribution treasury shares retained earnings and accumulated other incomes. Mathematically it is represented as Book value of Equity Formula owners contribution Treasury shares Retained earnings Accumulated other incomes.
Formula and Calculation of PB Ratio In this equation book value per share is calculated as follows.
Book Value formula calculates the net asset of the company derived by total of assets minus the total liabilities. Heres the formula of price to book value Price to Book Value Ratio Market Price Per ShareBook Value per Share. Here is the book value formula for an individual asset. More What the Price-To-Book Ratio.