Definition Book Value Per Share
Book value per share represents the equity a common stockholder has in the net assets of the corporation form owning one share of stock.
Definition book value per share. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares. Therefore the formula for computing book value per share when a company has only one class of stock outstanding is. 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.
In the case that the firm dissolves it is the amount the shareholders will receive. 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. The net assets of a corporation must be equal to total stockholders equity.