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how do you calculate book value. Alternatively Book Value can be calculated as the sum total of the overall Shareholder Equity of the company. The term book value is a companys assets minus its liabilities and is sometimes referred to as stockholders equity owners equity shareholders equity or simply equity.
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So if the company has 10000000 in stockholders equity and 1000000 shares of stock outstanding the book value of each share is 100000001000000 or 10. Share price number of shares outstanding total assets and total liabilities. An assets book value is equal to its carrying value on the balance sheet and companies.
Market Cap is equal to share price times shares outstanding.
You can find the necessary information to calculate book value on a companys balance sheet. Share price number of shares outstanding total assets and total liabilities. The Price to Book ratio or Market to Book ratio can easily be calculated in Excel if the following criteria are known. You can also find the book value of a company by subtracting intangible assets non-physical items of value and liabilities from total assets.
