Book Value per Share

RELATED WIKI ARTICLES
 

Book Value per Share equals total book value divided by shares outstanding

Book Value per Share (alternately "Net Asset Value per Share" or "Equity Per Share" is a recalculation of book value, wherein the total book value is divided by the number of shares outstanding. This number is particularly useful in quickly calculating the price to book ratio.

Investors use book value per share as a measure of a company's net value of all its "stuff", scaled by the number of shares outstanding. This is useful when looking at the underlying asset values of two differently sized companies. As, while a company with 1,000,000 shares outstanding and a company with 100,000,000 shares outstanding may have drastically different book values, they may have similar book values per share.

Example

10 million. The company has 2,000,000 shares outstanding. Thus, the book value per share is $5.00 (10 million / 2 million = 5.00).

See Also

Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki