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what is the formula of book value. To arrive at the book value simply subtract the depreciation to date from the cost. As an example consider this hypothetical balance sheet for a company that tracks the book value of its property plant and equipment its common to group assets together like this.
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Therefore the book value formula can be expressed as. Book Value per Share Total Common Stockholders Equity Preferred Stock Number of Common Shares. In the example above the assets book value after 6 years would be 10000 - 6000 or 4000.
The formula for calculating book value per share is the total common stockholders equity less the preferred stock divided by the number of common shares of the company.
Therefore the book value formula can be expressed as. As an example consider this hypothetical balance sheet for a company that tracks the book value of its property plant and equipment its common to group assets together like this. Therefore the book value formula can be expressed as. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders.
