Book Value Per Share Calculator
Book value per share is what a company's net assets come to for each share, using the figures on its balance sheet. It gives a recorded net worth to set beside the share price.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Start with total assets, subtract total liabilities, then subtract preferred stock, which is paid out before common shareholders. That leaves common equity. Divide common equity by the shares outstanding.
Balance sheet values are recorded costs adjusted over time, not current market prices, so the figure can differ a lot from what the assets would sell for.
Worked example
With $4,000,000,000.00 of total assets, $2,500,000,000.00 of liabilities and $0.00 of preferred stock, common equity comes to $1,500,000,000. Spread over 300,000,000 shares, that is $5.00 per share.
Questions
Why compare book value with the share price?
A price well above book value means the market is counting on value the balance sheet does not show, such as brand strength or growth. Treat the gap as a question to ask, not an answer.
Do intangible assets count?
It depends on how the company reports them. Some intangibles, such as goodwill acquired in a purchase, are included in total assets, which can raise book value.
Where do I find these numbers?
They are on the balance sheet in a company's annual report. The shares outstanding are on the cover page or in the income statement.
More like this
- Earnings Per Share CalculatorProfit per share from net income and share count.
- Loan to Value CalculatorLoan as a percent of what the property is worth.
- Enterprise Value CalculatorMarket value plus debt, minus cash.
- Investment CalculatorGrowth from a start amount and monthly deposits.
- Retirement CalculatorProjected savings from a balance, yearly saving and a return.
- 401k CalculatorBalance with pay, your share, employer match and return.