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book value formula from balance sheet. Next the balance sheet states the companys liabilities. For example if the shareholders equity section of the balance sheet contained a total of 1000000 and there were 200000 shares outstanding then the book value per share would be 5.
How Are Book Value And Market Value Different from www.investopedia.com
How to Calculate Book Value from a Balance Sheet Look at any company balance sheet which is a snapshot of the companys finances. When referring to a company book value is the same as shareholders equity on the balance sheet which is the difference between assets and liabilities minus intangible assets. Next the balance sheet states the companys liabilities.
When compared to the current market value per share the book value per share can provide information on how a companys stock is valued.
Next the balance sheet states the companys liabilities. The above-mentioned data can be found on the balance sheet of the company. The price-to-book ratio formula is calculated by dividing the market price per share by book value per share. Taking above example of Apple Inc we can calculate the book value per share as follows.