Book Value Per Share Calculator
- Total Equity: This is the net value of a company if all its assets were sold and all its debts were paid off today. It is calculated by subtracting total liabilities from total assets. Total equity represents the amount of value that the shareholders would receive if the company was liquidated.
- Preferred Equity: This is the value of the preferred shares that a company has issued. Preferred shares are a type of equity investment that carries certain privileges not afforded to common shareholders, such as a higher claim to dividends and assets in the event of a liquidation. It’s important to subtract this from total equity when calculating the book value per share for common shareholders because these benefits aren’t available to them.
- Number of Common Shares Outstanding: This is the number of shares of common stock that are currently being held by all its shareholders, including institutional investors and insiders. It does not include treasury shares held by the company itself. This number is important for calculating per-share financial ratios like earnings per share (EPS) and book value per share. The number of common shares outstanding can often be found in a company’s annual report.