Showing posts with label Book Value per Share. Show all posts
Showing posts with label Book Value per Share. Show all posts

Tuesday, November 15, 2016

Book Value Per Share Concept Slide

Picture explains that book value is obtained by dividing net assets by number of shares
Picture Depicts the Concept and Formula of Computing Book Value per Share

Thursday, September 22, 2016

Book Value Per Share - Formula

Book Value Per Share is obtained by dividing net assets of the company by total number of equity shares of the company. Net assets are total tangible assets reduced by all outside liabilities (other than share capital and reserves).


Example:


Book Value Per Share of SJVN Ltd.

Related Links:

Tuesday, September 20, 2016

Wednesday, September 7, 2016

Definition of Book Value per Share

Meaning/ Definition:


‘Book Value of a Share’ is net assets owned by a company reduced or converted or brought down to a single share. Net assets are total tangible assets reduced by all outside liabilities (other than share capital and reserves).


Significance:


‘Book Value per Share’ forms the denominator in the formula for computing the Price to Book Value, which is one of the most important metric in determining the fair price of a share, the other being ‘Price to Earnings (PE) Ratio.



Formula:


Book Value per Share Fprmula


Example:


Table showing the computation of book value per share

Further Reading: