Book Value Per Share Calculator

How it is calculated

The tool computes BVPS = (equity − preferred) / shares. Equity is total shareholders' equity from the balance sheet, which is total assets minus total liabilities. Preferred is the book value of preferred stock, taken out because preferred holders rank ahead of common holders. Shares is the number of common shares outstanding. Equity and preferred are in the same currency; the answer is shown in dollar format per share.

Leave preferred empty and it counts as zero. Shares must be greater than zero. Equity can be negative, which gives a negative book value per share, for example equity of −200,000 over 100,000 shares gives −2.00. Book value comes from historical accounting figures, so it is not the same as market price or fair value.

Common mistakes

• Forgetting to subtract preferred equity when the company has preferred stock. The result then overstates what belongs to common holders.
• Using the total number of authorised shares or including treasury shares. Use shares outstanding.
• Entering equity in thousands or millions but shares in single units. Both must be in matching scale, or the result is off by a factor of 1,000 or more.
• Entering total assets instead of equity. Liabilities must already be subtracted.
• Reading book value as what a share is worth. Intangible assets, brand value and growth are not fully on the balance sheet, so the market price can be far from BVPS.