Book Value Per Share
Calculator

Inputs

Book value per share
35.714285

Results

Book value per share
35.714285
Common equity
5,000,000,000

Investing results

Book value per share35.714285
Common equity5,000,000,000

formula-map diagram

Book value per share
35.714285
Common equity
5,000,000,000

Investing relationship

Formula

BVPS = (total equity − preferred equity) ÷ shares outstanding

= 35.714285714286

Note

This is not investment advice. It is a simplified model: it applies the displayed standard formula to the figures you entered, ignores taxes, fees, currency effects and credit risk, and assumes cash flows arrive exactly as scheduled. Real markets do not behave that way, and past or projected returns do not guarantee future results. Check the assumptions and consult a licensed adviser before acting on any figure.

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Frequently asked questions

How is book value per share calculated?+

It's calculated as total shareholders' equity minus preferred equity, divided by the number of common shares outstanding. It represents the theoretical amount each common share would be worth if the company liquidated all assets and paid off all liabilities at their balance sheet values.

Why is book value per share often different from the market share price?+

Book value reflects historical accounting figures (assets at cost minus depreciation, minus liabilities), while market price reflects investors' expectations about future earnings, growth, and intangible value — the two rarely match because they measure fundamentally different things.

Does goodwill affect book value per share?+

Yes, goodwill from past acquisitions is included in total assets and therefore in equity, but it's an accounting construct that can be written down if an acquisition underperforms, so book value including large goodwill balances may not represent real liquidation value.

Why subtract preferred equity from total equity before dividing by common shares?+

Preferred shareholders have a priority claim on the company's equity ahead of common shareholders, so their portion must be excluded to isolate the equity value actually attributable to common stockholders.

How is book value per share used alongside the price-to-book ratio?+

Book value per share is the denominator in the price-to-book ratio (market price divided by book value per share), so this calculator's output is often a direct input into assessing whether a stock is trading above or below its accounting net worth.