Book value per share formula

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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.

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