What is book value per share?

Book value per share (BVPS) is the ratio of equity available to common shareholders divided by the number of outstanding shares. This figure represents the minimum value of a company’s equity and measures the book value of a firm on a per-share basis.

How do you calculate book value per share?

Subtract the preferred stock equity from the total shareholders’ equity; the difference is the total common equity. Divide the total common equity by the total outstanding common shares to get the book value per share.

Is book value earnings per share?

Carry value or book value EPS is the real cash worth of each share of company stock. Retained EPS is the amount of the earnings kept by the company rather than shared as dividends. Cash EPS is the actual total number of dollars earned.

Is book value per share the same as price per share?

The book value of a company is the difference between that company’s total assets and total liabilities, and not its share price in the market.

Is a high book value good?

If book value is higher than market value, it suggests an undervalued stock. If the book value is lower, it can mean an overvalued stock. Book value and market value are best used in tandem when making investment decisions.

What does book value indicate?

Book value is the accounting value of the company’s assets less all claims senior to common equity (such as the company’s liabilities). When compared to the company’s market value, book value can indicate whether a stock is under- or overpriced.

What is the book value of Microsoft stock?

Microsoft’s book value per share for the quarter that ended in Mar. 2021 was USD17.85. During the past 12 months, Microsoft’s average Book Value Per Share Growth Rate was 18.30% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 11.20% per year.

What is the average book value per share?

During the past 3 years, the average Book Value Per Share Growth Rate was 11.20% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 9.90% per year.

What is the current price to book ratio of Microsoft?

The current price to book ratio for Microsoft as of October 21, 2019 is 10.25.

Which is correct book value or price to book value?

Price to book value is a financial ratio used to compare a company’s book value to its current market price. Book value is an accounting term denoting the portion of the company held by the shareholders at accounting value (not market value).