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what is the formula of book value per share. Book value per share is a ratio that compares the net asset value of a company minus preferred equity to the total number of common shares available on the market. Book Value per Share Shareholders Equity Preferred Equity Total Outstanding Common Shares.
Book Value Total Common Shareholders Equity Preferred Stock Number of Outstanding Common Shares. If company has issued only common stock and no preferred stock. Book value per share BVPS takes the ratio of a firms common equity divided by its number of shares outstanding.
Book value per share is determined by dividing common shareholders equity by total number of outstanding shares.
The book value per share BVPS is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Net income on a per share basis is referred to as EPS or earnings per share. Book Value per Share Shareholders Equity Preferred Equity Total Outstanding Common Shares. Importance of Net Book Value.