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how to calculate the book value per share formula. Book value per share equals total assets minus total liabilities divided by total outstanding shares. Net income on a per share basis is referred to as EPS or earnings per share.
Otherwise the book value per share would be inflated and inaccurate. When compared to the current market value per share the book value per share can provide information on how a companys stock is valued. Total equity preferred equity and total outstanding shares.
The formula for price to book value is the stock price per share divided by the book value per share.
Otherwise the book value per share would be inflated and inaccurate. Net income on a per share basis is referred to as EPS or earnings per share. When compared to the current market value per share the book value per share can provide information on how a companys stock is valued. To calculate the book value per share you must first calculate the book value then divide by the number of common shares.