# 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. 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 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 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 \$ 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 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 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 You can calculate BVPS for common stock using Book Value Per Common Share Calculator