Book Value Per Share Calculator
Calculate the book value per share (BVPS) to determine a company's equity value per outstanding share
Found on the balance sheet as Total Equity or Total Stockholders' Equity
Enter 0 if the company has no preferred stock
Number of common shares currently held by investors
Add stock price to calculate P/B ratio and valuation analysis
Book Value Per Share (BVPS)
Net asset value per common share
P/B Ratio
Price-to-Book Ratio
Market vs Book
%
Valuation
Based on P/B ratio
P/B Ratio Scale
Calculation Breakdown
P/B Ratio Interpretation Guide
| Category | P/B Range | Description |
|---|---|---|
Quick Tips
Compare Within Industry
P/B ratios vary significantly across industries
Look at Trends
A growing BVPS over time is a positive sign
Consider ROE
High ROE + growing BVPS = efficient equity use
Use Multiple Metrics
BVPS is just one tool—use P/E, ROE, and others too
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About Book Value Per Share Calculator
What is Book Value Per Share (BVPS)?
Book Value Per Share (BVPS) is a fundamental financial metric that represents the theoretical value that shareholders would receive for each share if a company were to liquidate all its assets and pay off all its liabilities. It's essentially the net asset value of a company divided by the number of outstanding shares.
How to Use This Calculator
- Enter Total Shareholders' Equity: Input the total equity from the balance sheet
- Enter Preferred Stock Value: Input the value of any preferred stock (if applicable)
- Enter Outstanding Shares: Input the number of common shares outstanding
- Enter Current Stock Price: Compare BVPS to market price for valuation analysis
- Review Results: See BVPS, P/B ratio, and interpretation
Understanding Your Results
Book Value Per Share
The net asset value attributable to each common share. A higher BVPS generally indicates more value backing each share.
Price-to-Book (P/B) Ratio
Compares the market price to book value. P/B < 1 may indicate undervaluation, while P/B > 1 suggests the market values the company above its book value.
Equity Premium/Discount
Shows whether the stock is trading at a premium or discount to its book value.
BVPS Formula
BVPS = (Total Shareholders' Equity - Preferred Stock) ÷ Outstanding Shares
Where:
- Total Shareholders' Equity = Total Assets - Total Liabilities
- Preferred Stock = Equity held by preferred shareholders
- Outstanding Shares = Total number of common shares currently held by investors
Alternative Formula
BVPS = (Total Assets - Total Liabilities - Preferred Stock) ÷ Outstanding Shares
P/B Ratio Interpretation
| P/B Ratio | Interpretation |
|---|---|
| < 1.0 | Potentially undervalued - trading below book value |
| 1.0 | Trading at book value - fairly valued |
| 1.0 - 3.0 | Moderate premium - market sees growth potential |
| > 3.0 | High premium - strong intangibles or growth expectations |
Industry Benchmarks
| Industry | Typical P/B Ratio |
|---|---|
| Banking & Finance | 0.8 - 1.5 |
| Utilities | 1.0 - 2.0 |
| Manufacturing | 1.5 - 3.0 |
| Technology | 3.0 - 10.0+ |
| Healthcare | 2.0 - 5.0 |
| Retail | 1.5 - 4.0 |
Note: These are general ranges and can vary significantly based on market conditions and company specifics.
Limitations of BVPS
- Uses historical cost: Assets are recorded at purchase price, not current market value
- Ignores intangibles: Doesn't account for brand value, patents, or goodwill properly
- Not suitable for all industries: Less meaningful for tech and service companies with few tangible assets
- Backward-looking: Reflects past values, not future earning potential
- Accounting differences: Can vary based on accounting methods used
When to Use BVPS
Best suited for:
- Asset-heavy industries (banking, manufacturing, real estate)
- Value investing analysis
- Comparing companies within the same industry
- Identifying potentially undervalued stocks
Less suitable for:
- Technology companies with significant intangible assets
- Service-based businesses
- High-growth startups
- Companies with significant off-balance-sheet items
Tips for Using BVPS
- Compare within industry: BVPS is most useful when comparing similar companies
- Look at trends: A growing BVPS over time is generally positive
- Consider ROE: High ROE with growth in BVPS indicates efficient use of equity
- Use with other metrics: BVPS should be one of many valuation tools, not the only one
- Check for adjustments: Some analysts use tangible book value (excluding goodwill and intangibles)
Frequently Asked Questions
What's a good book value per share?
There's no universal "good" BVPS - it depends on the industry, company size, and growth stage. Compare with industry peers for context.
Why might BVPS differ from market price?
Market price reflects future expectations, growth potential, and intangibles, while BVPS only captures historical accounting value.
How often does BVPS change?
BVPS changes when retained earnings increase/decrease or when the number of outstanding shares changes.
Can BVPS be negative?
Yes, if accumulated losses exceed paid-in capital, book value becomes negative.
Note: This calculator provides estimates for educational purposes. Book value should be considered alongside earnings, cash flow, and other fundamental metrics when evaluating investments. Always consult financial statements and professional advice for investment decisions.