Book Value per Share Book value per share BVPS is a measure of value of a companys common share based on book value of the shareholders equity of the company. The price per book value is a way of measuring the value offered by a firms shares. The calculation of book value is very simple if company has issued only common stock.
Book Value of Equity Formula It is calculated by adding the owners capital contribution treasury shares retained earnings and accumulated other incomes.
The formula for book value per share is to subtract preferred stock from stockholders equity and divide by the average number of shares outstanding. If the value of BVPS exceeds the market value per share the companys stock is deemed undervalued. Book Value of Equity Formula It is calculated by adding the owners capital contribution treasury shares retained earnings and accumulated other incomes. The price per book value is a way of measuring the value offered by a firms shares.