What is book value per share?

What is book value per share?

Book value per share (BVPS) is a fundamental financial metric that represents a company's net asset value on a per-share basis.

It's calculated by dividing the company's total equity (minus preferred equity) by the number of outstanding shares.

Book value share represents the minimum value of a company's equity, assuming the company's assets would be sold at their carrying value.

BVPS = (Shareholders' Equity - Preferred Equity) / Total Outstanding Shares


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