Book Value Per Share Calculator
Calculate the per-share book value of a company
BVPS Formulas
Understanding Book Value Per Share
Book Value Per Share (BVPS) represents the equity available to common shareholders divided by shares outstanding. It's the accounting value of each share if the company liquidated assets and paid all liabilities. Think of it as the 'floor value' per share.
BVPS comes directly from the balance sheet: Total Equity minus Preferred Equity, divided by common shares. If a company has $100 million in equity and 10 million shares, BVPS is $10. Compare to stock price for P/B ratio.
Growing BVPS over time indicates the company is building shareholder value through retained earnings. Warren Buffett tracks BVPS growth as a key measure of intrinsic value creation. Consistent BVPS growth is a positive sign.
BVPS Components
Common Equity
Shareholders' equity attributable to common stockholders.
Retained Earnings
Accumulated profits not paid as dividends. Major driver of BVPS growth.
Treasury Stock
Repurchased shares. Reduces equity but also reduces share count.
Intangibles
Goodwill, patents, trademarks. Excluded from tangible BVPS.
BVPS Analysis
| Scenario | Stock Price vs BVPS | Interpretation | Action |
|---|---|---|---|
| Deep Value | Price < 0.5× BVPS | Major discount | Research why |
| Value | Price < BVPS | Below book | Potential opportunity |
| Fair | Price ≈ BVPS | At book value | Industry dependent |
| Premium | Price > 2× BVPS | High premium | Growth expected |
| High Growth | Price > 5× BVPS | Major premium | Intangible value |
BVPS Analysis Tips
Track BVPS Growth
Consistent 8-15% annual BVPS growth indicates strong value creation. Compare to peers.
Use Tangible BVPS
For acquisitive companies, tangible BVPS excludes potentially overvalued goodwill.
Compare to ROE
BVPS growth ≈ ROE × (1 - dividend payout). High ROE should drive high BVPS growth.
Watch for Dilution
Stock issuance increases shares, potentially diluting BVPS even if equity grows.
Frequently Asked Questions
Where do I find BVPS data?
Calculate from balance sheet: Total Equity ÷ Shares Outstanding. Many financial sites also report BVPS directly. Use diluted shares for conservative measure.
Why does BVPS differ from stock price?
Stock price reflects future expectations and intangible value. BVPS is historical accounting value. Growing companies trade above BVPS; distressed companies may trade below.
What's a good BVPS growth rate?
10-15% annual growth is excellent. BVPS growth = ROE × retention ratio. A company with 15% ROE and 70% retention grows BVPS at ~10.5% annually.
How do buybacks affect BVPS?
Buybacks reduce both equity (cash paid out) and shares. If bought below BVPS, remaining shares' BVPS increases. If bought above BVPS, remaining BVPS decreases.
Pro Tips
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