Compute the book value per share of capital stock

Book value per common share bvps calculates the common stock. We are deducting preferred stock from the shareholders equity because preferred shareholders are paid first after the debts are being paid off. How to calculate the implied value per share of common equity. The book value of a stock book value of total assets total liabilities. Book value per share formula how to calculate bvps. Book value per share tells investors what a banks, or any stocks, book value is on a pershare basis. Total outstanding shares total number of shares issued. In depth view into capital one financial book value per share explanation, calculation, historical data and more. There is no formula for calculating the market value per share of a company. Book value per share bvps overview, formula, example. How to calculate the issue price per share of stock using the information in a companys annual report, you can determine the price at which it issued shares.

The book value per share bvps is calculated by taking the ratio of equity available. The following information is necessary to compute the net assets stockholders equity and book value per share of common stock for rothchild corporation. 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. If the value of bvps exceeds the market value per share, the companys stock is. How to figure the book value of bank stock finance zacks. To arrive at this number, subtract liabilities from assets.

Warren buffett explains how to calculate the intrinsic value of a stock duration. Book value per share formula with calculator financial formulas. If a corporation does not have preferred stock outstanding, the book value per share of stock is a corporations total amount of stockholders equity divided by the. Book value per common share bvps definition investopedia. Book value per share compares the amount of stockholders equity to the. Book value per share is a market value ratio used for accounting purposes by. Calculating book value per share requires that we take the book value of the. The book value per share may be used by some investors to determine the equity in a.