Book Value Per Share Calculator
Calculate book value per share (BVPS) from shareholders’ equity, preferred equity and shares outstanding.
How it works
Book value per share = (total shareholders’ equity − preferred equity) ÷ shares outstanding
Book value per share expresses a company’s net worth — assets minus liabilities — as a per-share figure, showing the accounting value backing each share. Preferred equity is removed first because it ranks ahead of common stock. Comparing BVPS with the market price gives the price-to-book ratio; a share trading near or below its book value can look cheap, though intangible-heavy companies are usually worth far more than their books suggest.
Worked example
A company with $200,000,000,000 of shareholders’ equity, no preferred equity and 5,000,000,000 shares has a book value per share of 200,000,000,000 ÷ 5,000,000,000 = $40.00.
Frequently asked questions
How is book value per share different from market price?
Book value is an accounting figure — net assets on the balance sheet. Market price is what investors will pay, reflecting future prospects the books do not capture. The two rarely match.
Why subtract preferred equity?
Preferred shareholders have a senior claim on the company’s assets. Removing their portion leaves the equity that genuinely belongs to common shareholders.
Can book value per share be negative?
Yes, if liabilities exceed assets. Negative book value often reflects heavy debt, accumulated losses or large buybacks, and makes the price-to-book ratio meaningless.
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Educational estimate, not investment advice. Ratios and valuation models are simplifications; verify figures against official filings and consult a licensed advisor before investing.