About the Book Value Per Share Calculator
This book value per share calculator shows how much of a company’s accounting net worth belongs to each common share. Enter total shareholders’ equity from the balance sheet, the portion attributable to preferred stock, goodwill and other intangible assets, and the number of common shares outstanding. It returns book value per share (BVPS), tangible book value per share (TBVPS), and — if you add the current share price — the price-to-book and price-to-tangible-book multiples.
Value investors use BVPS to spot shares trading below the accounting value of their net assets; bank and insurance analysts lean on tangible book value because goodwill cannot be used to absorb losses. Accountants and students use it to practise the equity section of the balance sheet.
Use common shares actually outstanding (issued shares less treasury stock) on the balance sheet date. Preferred equity should be its liquidation or redemption value plus any dividends in arrears, because that amount ranks ahead of common shareholders. Book value is a historical-cost measure and can differ widely from market or liquidation value.
With the default inputs, the book value per share is $4.60. Change any value above to recalculate instantly.
How to use the book value per share calculator
- 1Enter total shareholders’ equity from the latest balance sheet.
- 2Enter the value of preferred stock, if any.
- 3Enter goodwill and intangible assets to get tangible book value.
- 4Enter common shares outstanding, net of treasury stock.
- 5Optionally add the share price to see the price-to-book ratio.
Formula and method
Book value per share starts with total shareholders’ equity and removes the claim of preferred shareholders, who are paid before common shareholders in a liquidation. What remains is common equity, which is divided by the common shares outstanding on the same date (treasury shares excluded).
Tangible book value also strips out goodwill and other intangible assets such as brands, customer lists and patents, because they usually cannot be sold separately and would be worth little in a wind-down. The price-to-book multiple compares the market price with BVPS; when equity is negative a multiple is not meaningful and the calculator says so.
- BVPS
- Book value per common share
- TBVPS
- Tangible book value per common share
- Preferred equity
- Liquidation value of preferred stock plus dividends in arrears
Worked examples
Company with preferred stock and goodwill
Removing $1M of preferred equity from $12.5M leaves $11.5M of common equity, or $4.60 per share across 2.5M shares. Excluding $2M of intangibles gives $3.80 per share. At $8 a share the stock trades at about 1.74x book.
Bank trading below book
With $50M of common equity and 4M shares, book value is $12.50 per share. A $10 share price means the bank trades at 0.8x book — the market values it below its accounting net worth.
Acquisitive company with negative tangible book
Common equity of $2.5M gives a book value of $2.50 per share, but goodwill of $4M exceeds it, so tangible book value is −$1.50 per share and a price-to-tangible-book multiple is not meaningful.
Frequently asked questions
What does book value per share tell you?+
It shows the accounting value of common equity attributable to each share — roughly what shareholders would receive per share if assets were sold at their balance sheet values and all liabilities and preferred claims were paid. It is a floor-style valuation reference rather than a forecast.
Why subtract preferred stock?+
Preferred shareholders have a priority claim on assets and dividends ahead of common shareholders. Their liquidation value, plus any dividends in arrears, is removed so the result reflects only what belongs to common shareholders.
What is the difference between book value and tangible book value?+
Tangible book value excludes goodwill and other intangible assets. It is a more conservative measure, widely used for banks and insurers, because intangibles usually cannot be sold separately to repay creditors or absorb losses.
Is a stock trading below book value a bargain?+
Not necessarily. A price-to-book below 1 can mean the market expects losses, write-downs or poor returns on equity. Compare return on equity, asset quality and peers before concluding that the shares are undervalued.
Should I use basic or diluted shares?+
Standard BVPS uses common shares outstanding on the balance sheet date. Some analysts also compute a diluted version that adds in-the-money options, warrants and convertibles, which lowers the per-share figure.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.