Book Value per Share Converter
This calculator helps determine the book value of a company per common share, offering investors insight into a company's intrinsic worth. It's commonly used in fundamental analysis to evaluate stock value against market price.
Book Value per Common Share Calculator
Book Value per Share Formula
$$\text{Book Value per Share} = \frac{\text{Stockholders’ Equity} – \text{Preferred Stock}}{\text{Total Outstanding Shares}}$$
Where:
- $$Stockholders’ Equity$$ = total equity from balance sheet
- $$Preferred Stock$$ = value of preferred equity
- $$Total Outstanding Shares$$ = number of common shares issued and outstanding
The book value per common share represents the equity value available to common shareholders divided by the number of outstanding shares. It serves as a measure of a company’s net asset value on a per-share basis and is particularly useful when assessing undervalued or overvalued stocks. The formula excludes preferred stock to reflect the value available to common shareholders only.