Book Value Per Share

What is a Book Value Per Share

Book Value Per Share is a companyÕs book value per share is used to determine the tangible value of each common share. It is found by subtracting intangible assets and the par value of preferred stock from the corporationÕs total net worth and dividing that number by the amount of common shares outstanding.

SecuritiesCE Explains Book Value Per Share

Book value is the theoretical liquidated value of a company. If a company were to sell off all its assets and then subtract all its liabilities, what’s left is the book value of the company. When divided by the number of shares in the public hands you have the book value per share for that company. This is not to be confused with market value, which is what the customer’s investment is actually worth.

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