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what is the formula of book value per share. Total Outstanding Shares Total Number of Shares Issued Shares as Treasury Stock. Net income on a per share basis is referred to as EPS or earnings per share.
Further Book Value Per Share BVPS can be computed based upon the equity of the common shareholders in the company. Comparing BVPS to a stocks market price could help value investors find opportunities. When book value per share is high compared to a companys share price the companys stock is deemed as undervalued.
In our example the NBV of the logging companys truck after four years would be 140000.
To determine a companys book value youll need to look at its balance sheet. The stock price per share can be found as the amount listed as such through the secondary stock market. Book value is equal to a companys current market value divided by the book value of all of its shares. The book value per share is the value each share would be worth if the company were to be liquidated all the bills paid and the assets distributed.