Book Value per Share (BVPS)
Book Value per Share (BVPS)
Book common equity attributable to the relevant common shareholders divided by matching common shares outstanding.
When to use: Use as the denominator of P/B and as a baseline for the Graham Number. BVPS is also a starting point for "tangible" or "adjusted" book-value variants commonly used in financial-services analysis.
Formula
Variables
| Symbol | Name | Description | Unit |
|---|---|---|---|
| BVPS | Book Value per Share | Equity ÷ shares outstanding | $ |
| Equity | Shareholders' Equity | Book value of shareholders' equity | $ |
| Shares | Shares Outstanding | Diluted shares outstanding | integer |
Real-Life Examples
Example 1: Mid-Cap Bank
Total shareholders' equity is $3.5 billion. Diluted shares outstanding: 100 million.
Given
Step-by-Step
Book value per share is $35. A bank trading at $40 is at a 1.14× P/B; one trading at $30 would be at 0.86× — meaningfully below book and a potential value signal (or a credit-concern warning).
Frequently Asked Questions
Use common equity attributable to the same shareholder class as the denominator; exclude preferred equity and noncontrolling interests when they are included in reported total equity.
No. Accounting carrying values differ from market or economic values, especially for internally developed intangible assets.