Book Value Per Share

Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company.
Book value per share. If the value of bvps exceeds the market value per share the. The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity. In other words this measures a company s total assets minus its total liabilities on a per share basis.
Book value of equity per share effectively indicates a firm s net asset value. When compared to the current market value per share the book value per share can provide information on how a company s stock is valued. The book value per share bvps is a ratio that weighs stockholders total equity against the number of shares outstanding.
The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders.