The formula for BVPS involves taking the book value of equity and dividing that figure by the weighted average of shares outstanding.
It takes the net value of a listed company’s assets, also known as shareholder’s equity, and divides it by the total number of outstanding shares of that organisation.
By comparing the market value per share with the book value per share, investors can assess whether a stock is currently undervalued or overvalued in the market.
It’s also known as stockholder’s equity, owner’s equity, shareholder’s equity, or just equity, and it refers to a company’s assets minus its liabilities.
The formula for Calculating the Book Value Per Share