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When calculating the book value per share of a company, we base the calculation on the common stockholders’ equityStockholders EquityStockholders Equity (also known as Shareholders Equity) is an account on a company’s balance sheet that consists of share capital plus, and the preferred stock should be excluded from the …

Book value per share (BVPS) is the ratio of equity available to common shareholders divided by the number of outstanding shares. This figure represents the minimum value of a company’s equity and measures the book value of a firm on a per-share basis.

## How do you calculate book value?

How do you calculate book value? The book value of a company is equal to its total assets minus its total liabilities. The total assets and total liabilities are on the company’s balance sheet in annual and quarterly reports.

The most common way to value a stock is to compute the company’s price-to-earnings (P/E) ratio. The P/E ratio equals the company’s stock price divided by its most recently reported earnings per share (EPS).

The book value per common share is computed by deducting the liquidation value of the preferred shares from the total equity of the corporation and dividing the result by the number of outstanding common shares as of balance sheet date nearest to the transaction date.

## How do you calculate book value depreciation?

The formula for calculating NBV is as follows:

- Net Book Value = Original Asset Cost – Accumulated Depreciation.
- Accumulated Depreciation = $15,000 x 4 years = $60,000.
- Net Book Value = $200,000 – $60,000 = $140,000.

For example, if a company has a total asset balance of $40mm and total liabilities of $25mm, then the book value of equity is $15mm. If we assume the company has preferred equity of $3mm and a weighted average share count of 4mm, the book value per share is $3.00 (calculated as $15mm less $3mm, divided by 4mm shares).

## How do you calculate book value and market value?

Book value is calculated by taking the balance sheet’s difference between assets and liabilities. The market value of a company is calculated by multiplying the market price per share of the company with the number of outstanding shares.

Valuation of a Preference Share:

This dividend is the percentage of the face value of the share. For instance, a preference share with the face value of $100 which pays 5% dividend will pay $5 in dividends.