Book Value Per Share Calculator
Calculate the intrinsic value of a company by determining its book value per share and comparing it to market price
shares
Historical BVPS Data (Last 5 Years)
BVPS Analysis Results
BVPS
Book Value Per Share
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P/B
Price-to-Book Ratio
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Δ%
Premium/Discount
CAGR
5-Year CAGR
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Valuation Indicator:
Enter values to calculate
BVPS Trend (Last 5 Years)
Equity Composition
Company Comparison
| Company | BVPS | Market Price | P/B Ratio | Valuation |
|---|
Industry Benchmark
| Industry | Avg P/B Ratio | Your P/B Ratio | Comparison |
|---|---|---|---|
| Technology | 4.2 | - | - |
| Financial Services | 1.1 | - | - |
| Healthcare | 3.8 | - | - |
| Consumer Goods | 2.5 | - | - |
| Industrial | 1.8 | - | - |
BVPS-Based Valuation Checklist
How Book Value Per Share Helps Investors
- Identify Undervalued Stocks: When market price is below BVPS, the stock might be undervalued.
- Assess Financial Health: Companies with strong, growing BVPS typically have solid financial foundations.
- Compare Companies: BVPS allows comparison between companies of different sizes in the same industry.
- Evaluate Management: Consistently increasing BVPS indicates effective capital allocation.
- Determine Margin of Safety: Value investors use BVPS to calculate their margin of safety in investments.
Small-Cap vs Large-Cap BVPS Examples
Small-Cap Company Example
Total Equity: $50 million
Outstanding Shares: 10 million
BVPS: $5.00
Market Price: $4.50 (Trading at 10% discount)
Small-caps often trade below BVPS due to higher risk perception.
Large-Cap Company Example
Total Equity: $500 billion
Outstanding Shares: 10 billion
BVPS: $50.00
Market Price: $75.00 (Trading at 50% premium)
Large-caps often trade above BVPS due to brand value and future growth expectations.
Financial Terms Glossary
Book Value Per Share (BVPS): The value per share if a company was liquidated based on balance sheet values.
Total Equity: Assets minus liabilities; represents shareholders' ownership value.
Outstanding Shares: Total number of shares of a corporation that are currently held by all shareholders.
Price-to-Book Ratio (P/B): Market price divided by BVPS; measures market valuation relative to book value.
Intangible Assets: Non-physical assets like patents, trademarks, and goodwill.
Preferred Equity: Stock with priority over common stock in dividend payments and asset liquidation.
CAGR (Compound Annual Growth Rate): The mean annual growth rate of an investment over a specified time period.
Frequently Asked Questions
What is a good BVPS?
A "good" BVPS depends on the industry and company. Generally, consistent growth in BVPS over time is positive. Comparing BVPS to market price helps determine if a stock is undervalued.
Why would a company trade below its BVPS?
Companies may trade below BVPS due to poor future prospects, industry headwinds, financial distress, or market overreaction. This can present buying opportunities for value investors.
Should I always prefer stocks trading below BVPS?
Not necessarily. Some companies deserve to trade above BVPS due to strong growth prospects, valuable intangible assets, or competitive advantages. BVPS is just one metric to consider.
How often should I calculate BVPS?
BVPS should be calculated quarterly when companies report earnings, as equity and outstanding shares can change. Tracking the trend over time is more valuable than a single calculation.
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