# Book Value per Share Calculator

###### Updated: Jun 10, 2018

Book Value per Share Calculator is a tool to compute the difference between total assets and total liabilities

Book Value Per Share:
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#### Background Information

What does Book Value per Share mean?
Book value per share is just one of the methods for comparison in valuing of a company. Market value, market capitalization, Enterprise value, or firm value, and other methods may be used in different circumstances or compared to one another for contrast. The book value per share may be used by some investors to determine the equity in a company relative to the market value of the company, which is the price of its stock.
Formula
Book Value Per Share = (Total common stockholdersâ€™ equity - Preferred stock) / Number of common shares
Example

â€˜ABCâ€™ a company has the following information:-

• Total assets at the end of the year = $150,000 • Total liabilities at the end of the year =$80,000
• Preferred Stock = $20,000 • Number of common shares = 2000 shares • Now letâ€™s calculate the Shareholdersâ€™ Equity first; • Shareholdersâ€™ Equity = Total Assets â€“ Total Liabilities • Or,$150,000 â€“ $80,000 =$70,000.

According to the formula, Book Value Per Share is:-

• = ($70,000 -$20,000)/ 2000
• Therefore, Book value per share
• = $50,000 / 2000 • =$25 per share