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how to calculate the book value per share formula. In this equation book value per share is calculated as follows. This calculation is often modified to exclude intangible assets because they are not readily convertible to cash in which case the calculation is called the tangible book value per share.
The formula for calculating the book value per share of common stock is. Otherwise the book value per share would be inflated and inaccurate. Total equity preferred equity and total outstanding shares.
Total assets - total liabilities number of shares outstanding.
Net income on a per share basis is referred to as EPS or earnings per share. Total assets - total liabilities number of shares outstanding. Book value per share can also be used in calculating the return on equity formula which is also denoted as ROE. As shown at the top of this page book value per share is expressing stockholders equity on a per share basis.