What Is Book Value Per Share (BVPS)?
Book value per share (BVPS) measures the book value of a firm on a per-share basis. BVPS is found by dividing equity available to common shareholders by the number of outstanding shares. Book value equals a firm’s total assets minus its total liabilities.
Key Takeaways
- Book value per share (BVPS) measures a firm’s common equity divided by its number of shares outstanding.
- BVPS indicates a firm’s net asset value (NAV) or total assets minus total liabilities per share.
- When a stock is undervalued, it will have a higher BVPS than its stock price in the market.
Investopedia / Madelyn Goodnight
Measuring Book Value Per Share (BVPS)
The book value per share (BVPS) metric helps investors…
