BVPS Calculator

Formula

The formula to calculate Book Value Per Share (BVPS) is:

\[ \text{BVPS} = \frac{\text{Shareholders' Equity} - \text{Preferred Equity}}{\text{Weighted Average of Common Shares Outstanding}} \]

Where:

$ \text{Shareholders' Equity} $ is the total equity available to common shareholders.
$ \text{Preferred Equity} $ is the equity allocated to preferred shareholders.
$ \text{Weighted Average of Common Shares Outstanding} $ is the average number of common shares outstanding during the period.

Example

Let's say the shareholders' equity is $10,000,000, the preferred equity is $2,000,000, and the weighted average of common shares outstanding is 1,000,000. Using the formula:

\[ \text{BVPS} = \frac{10,000,000 - 2,000,000}{1,000,000} = 8 \]

So, the Book Value Per Share (BVPS) is $8.

What is Book Value Per Share (BVPS)?

Book Value Per Share (BVPS) measures the book value of a firm on a per-share basis. It is calculated by dividing the equity available to common shareholders by the number of outstanding shares. BVPS helps investors gauge whether a stock price is undervalued by comparing it to the firm's market value per share[^1^][^2^].