Definition Book Value Per Share

Book value per share bvps is a ratio used to compare a firm s common shareholder s equity to the number of shares outstanding.
Definition 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. What is book value per share bvps. The net assets of a corporation must be equal to total stockholders equity.
Therefore the formula for computing book value per share when a company has only one class of stock outstanding is. 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. In the case that the firm dissolves it is the amount the shareholders will receive.