Book Value per Share is a financial metric calculated by dividing a company’s total shareholder equity by its number of outstanding shares. The formula is:
Book Value per Share = Total Shareholder Equity / Number of Outstanding Shares
This metric provides insight into a company’s intrinsic value, representing the per-share value of its assets. Investors use it to assess a stock’s relative worth and make informed decisions. A higher book value per share generally indicates a more robust financial position, making it a crucial factor in financial analysis.