How to Calculate Book Value Per Share?

How to Calculate Book Value Equity Per Share (BVPS)?

BVPS Calculation

Book Value Per Share is the per share value of a company calculated based on the total equity of all the shareholders. It can be calculated in two ways : based on common stock and preferred stock.
How To Calculate Book Value Per Share
Formula :
1) If company provides only common stock and no preferred stock.
Book Value Per Share (BVPS) = Stockholders equity / Number of Shares of Common Stock Outstanding
Bvps Formula Common Stock
2) If company provides both common and preferred stock.
Book Value Per Share (BVPS) =(Total StockHolders Equity - Preferred Equity)/ Number of Shares of Common Stock Outstanding
Bvps Formula Common Preferred Stock
Step 1: A company provides common stock with 1,00,000 $ share issued. The additional paid in capital is 20,00,000 $ and retained earnings of 80,000 $.
Share Issued = 1,00,000 $
Addition Paid-In Capital = 20,00,000 $
Retained Earnings = 80,000 $
Book Value Equity Per Share Step1
Step 2: Book Value Per Share (BVPS) = Stockholders Equity / Number of Shares of Common Stock Outstanding.
Stockholder Equity = (100000 + 2000000 + 80000)
= $ 2180000 / 100000
= 21.8 per share of common stock
Book Value Per Share Step2
Step 3: If the preferred stock is $ 45,000 for a Total Stock Holder Equity of $ 21,80,000
Preferred Stock = $45000
Stock Holder Equity = $2180000
Book Value Equity Per Share Calculation Step3
Step 4: Book Value Per Share (BVPS) using Preferred Stock = Total Stockholders Equity - Preferred Equity / Number of Shares of Common Stock Outstanding.
= (2180000 - 45000) / 100000
= 2135000 / 100000
= 21.35 per share of preferred stock
How To Calculate Bvps Preferredstock Step4
You can calculate BVPS for common stock using Book Value Per Common Share Calculator


Related Topics