Calculate book value per share from total assets, liabilities, and shares outstanding with price-to-book ratio analysis.
Book value per share converts a company's balance-sheet totals into an accounting equity amount for each outstanding share. Supply total assets, total liabilities, and shares outstanding. If a market price is also entered, the tool compares that price with BVPS through the price-to-book ratio. The important distinction is that book value reflects recorded balance-sheet amounts, not market capitalization or an appraisal of what the assets could be sold for. Those values can differ substantially.
A concrete input and expected output from the current implementation.
Input
Total assets: $900,000 Total liabilities: $300,000 Shares outstanding: 120,000 Market price per share: $7.50
Expected output
Book value: $600,000 Book value per share: $5.00 Price-to-book ratio: 1.50
Subtracting $300,000 of liabilities from $900,000 of assets gives $600,000 of book value. Dividing by 120,000 shares gives $5.00 per share, and $7.50 divided by $5.00 gives a price-to-book ratio of 1.50.
The calculation first subtracts total liabilities from total assets. It then divides that difference by shares outstanding: BVPS = (total assets - total liabilities) / shares outstanding. Assets and liabilities should come from the same reporting date. Enter the share count in actual shares unless every monetary amount and the share count have been scaled consistently.
When a share price is supplied, price-to-book equals market price per share divided by BVPS. A result of 1.50 means the entered price is 1.5 times calculated book value per share, not that book value increased by 50 percent. Zero BVPS cannot produce a finite ratio, while negative BVPS makes the conventional ratio difficult to interpret.
For a reporting-date BVPS calculation, enter the common shares actually outstanding on that date. A diluted share count can be useful for a separate scenario involving options or convertible securities, but it is not automatically the correct denominator. The calculator uses the number entered and does not determine which potential shares should be included.
No. It only means the entered market price is below the calculated book value per share. Investors may expect losses, asset write-downs, weak returns, or financial distress. Book values can also be difficult to compare across companies with different asset mixes or accounting policies, so the ratio alone does not establish investment value.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
Calculate gross, operating, and net profit margins from cost and revenue with breakeven analysis.
Convert between annual salary and hourly rate with adjustments for work hours, overtime, and benefits.
Calculate sales tax amounts, tax-inclusive and tax-exclusive prices for any tax rate or jurisdiction.
Calculate return on investment from initial cost and final value with annualized ROI and comparison tables.
Convert between markup and margin percentages, calculate selling price, and compare pricing strategies.
Convert numeric amounts to written words for invoices, checks, and legal documents in multiple currencies.