What is Book Value Per Share & Book Value formula

What is Book Value Per Share

What is Book Value Per Share

book value per Share refers to the total worth amount of a company if it liquidated its assets & paid back its liabilities.

means shareholders will receive that much amount(book value) per share if a company is liquidated.

Book value indicates how strong a company is. if the book value of a share is high it means that the company's economic position is very strong.

we can also say that the Book value of a share shows us the real value of the company.

How to Calculate Book Value Per Share

Let's assume there is a company called "ABC" which market capital is 1 crore rupees (or your country currency).

General Reserve of the company is 1 crore and the total no of share is 10 lacs.

Book Value formula


Market Capital + Reserve / Total no of share

1 crore / 10 lacs = 20 Rupees

in this case, the book value of the company will be 20 Rupees.

you can measure the company performances year by year with the help of book value.

hope now you can calculate the Book value of the company's share.

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