Calculate current book value per share

Book value per common share bvps derives a companys book value on a. To make this easier, convert total book value to book value per share. What is book value per share and how can it help you in. Learn easy and simplest method to calculate book value of a stock or share in stock market this video is in english and hindi version of this video also available. Book value per share bvps takes the ratio of a firms common equity. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Book value indicates the difference between the total assets and the total liabilities and when the formula for book value per share is to divide this book value by. The market value per share is a companys current stock price, and it. Book value per share can separate the wheat from the chaff on a stock but it needs to be applied correctly. While bvps is calculated using historical costs, the market value per.

For example, if the number of outstanding shares is 400,000, the book value per. Book value per share formula with calculator financial formulas. Book value per share is a widely used stock evaluation measure. A shortterm event, such as a stock buyback, can skew periodending values.

If the value of bvps exceeds the market value per share. In other words, the value of all shares divided by the number of shares issued. How to calculate the book value of a company sapling. Book value per share formula calculator excel template. The book value per share bvps is calculated by taking the ratio of equity available. Book value of equity per share bvps is a ratio that divides common equity value by the number of common stock shares outstanding. Book value per share is a reliable barometer of a stocks potential value. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Book value of an asset refers to the value of an asset when depreciation is accounted for. The book value per share is determined by dividing the book value by the number of outstanding shares for a company. Book value per share bvps overview, formula, example. Book value per common share is a measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly.

To arrive at this number, subtract liabilities from assets. Book value per share formula how to calculate bvps. Divide the total value of the stock, by the total number of shares. It can be useful to compare the market price of shares to the book value. The book value per share is a finance tool used to assess the current stock price of a company. Its important to use the average number of outstanding shares in this calculation. At the same time, we use book value in the case of roe formula when we calculate the roe per share. 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. Ideally, investors are searching for stocks that have not peaked in. Depreciation is the reduction of an items value over time. Book value per share formula, calculator and example. Find the latest book value per share for amazoncom inc amzn. Online finance calculator which helps to calculate the book value per share from the values of stack holders equity, preferred stock and total outstanding shares.

Book value per share tells investors what a banks, or any stocks, book value is on a pershare basis. Finally, divide the companys current stock price by the book value per share. Book value per common share bvps definition investopedia. How to figure the book value of bank stock finance zacks. 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. We need to calculate the book value per share for the anand group of companies.