Book value per share

How much net asset sits on each share

In detail

Book value per share is net assets divided by shares outstanding. Net assets are total assets minus liabilities — the shareholders' slice. It measures the company's asset cushion on a per-share basis and forms the denominator of the P/B ratio. Retain profit instead of paying it out and book value per share creeps up.

Example

Net assets of $50 billion over 50 million shares gives book value of $1,000 a share.

Related terms

P/B ratio Equity ratio Balance sheet

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