Book Value Per Share
Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company.
Book value per share. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Learn more about how to calculate this ratio what it tells you and how investors use it to guide their decisions. Book value per share bvps takes the ratio of a firm s common equity divided by its number of shares outstanding.
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. Book value of equity per share effectively indicates a firm s net asset value. The book value per share bvps is a ratio that weighs stockholders total equity against the number of shares outstanding.
When compared to the current market value per share the book value per share can provide information on how a company s stock is valued.