Book Value per Share

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Book value per share is calculated this way: Book Value per Share = ({Total Equity} - {Preferred Stock})/ {Total Shares Outstanding}. Theoretically it is what the shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets less total liabilities of the company. Book value may include intangible items which may come from the companyâ„¢s past acquisitions. Book value less intangibles is called Tangible Book.