Book Value Per Share Calculator
Book value per share tells you how much accounting equity stands behind each common share of a company. It starts from total shareholders equity on the balance sheet, the value of everything the company owns less everything it owes, then strips out any equity that belongs to preferred shareholders, since they rank ahead of common holders. What is left is the common equity, and dividing it by the number of shares outstanding gives the book value attached to a single share. The figure matters because it is the accounting anchor for several valuation measures, most notably the price to book ratio, where market price is compared against this number. A company whose book value per share rises steadily is generally retaining and building equity, while a market price far above book value signals that investors expect returns beyond what the balance sheet records. Enter total shareholders equity, any preferred equity and the shares outstanding to see the result at once. The method follows the standard accounting definition described by the US Securities and Exchange Commission on its Investor.gov education site. Every number here is computed deterministically from the formula shown below, with a worked example that reconciles exactly to the default inputs so you can confirm each step yourself.
Book value per share is (shareholders equity minus preferred equity) / shares outstanding. Equity of $10,000,000 over 500,000 shares is $20.00 per share.
Book value per share formula
BVPS = (total shareholders equity - preferred equity) / shares outstanding
total shareholders equity = total assets - total liabilities
preferred equity = equity claim of preferred shareholders
shares outstanding = common shares issued and held
Subtract preferred equity from total shareholders equity to isolate the equity that belongs to common shareholders, then divide by the number of common shares outstanding. The result is the accounting value backing each common share.
Worked example
A company reports total shareholders equity of 10,000,000, no preferred equity, and 500,000 common shares outstanding.
- Common equity = 10,000,000 - 0 = 10,000,000
- Book value per share = 10,000,000 / 500,000
- Book value per share = 20.00
Each common share is backed by 20.00 of accounting equity. These are the calculator's default inputs, so the result above matches the widget exactly.
Book value per share at common share counts
This table shows book value per share for 10,000,000 of common equity at different share counts.
| Shares outstanding | Book value per share |
|---|---|
| 250,000 | $40.00 |
| 400,000 | $25.00 |
| 500,000 | $20.00 |
| 800,000 | $12.50 |
| 1,000,000 | $10.00 |
| 2,000,000 | $5.00 |
Equity and balance-sheet concepts: US Securities and Exchange Commission, Investor.gov.
Book value per share calculator: frequently asked questions
What is book value per share?
Book value per share is the net worth of a company on its balance sheet divided by the number of shares outstanding. It represents the accounting value of equity backing each share: total shareholders equity, minus any preferred equity, spread across the common shares. If a company were wound up at the values on its books, this is roughly what each common share would claim.
Why subtract preferred equity?
Preferred shareholders have a higher claim on a company's assets than common shareholders. To find the equity that belongs to common shares alone, you remove the portion attributable to preferred stock from total shareholders equity first. The remaining common equity is then divided by the number of common shares outstanding to give book value per share for ordinary investors.
How does book value per share differ from market price?
Book value per share comes from the balance sheet and reflects accounting values, often based on historical cost. Market price is what investors will currently pay and reflects expected future earnings, growth and sentiment. The two rarely match. The price to book ratio compares them: a market price above book value means investors expect returns beyond the accounting equity.
What is a good book value per share?
There is no single good number, because it depends on the company's size, share count and industry. What matters more is the trend over time and how the figure compares to the market price. A rising book value per share generally shows the company is retaining and growing equity, while comparing it to price gives the price to book ratio used in valuation.
What is the book value per share formula?
Book value per share = (total shareholders equity minus preferred equity) divided by shares outstanding. For example, 10,000,000 of equity with no preferred stock and 500,000 shares gives a book value per share of 20.00. Use the most recent balance sheet figures and the common shares outstanding for the same date.
Official sources
- Investing concepts, equity and balance-sheet basics: US Securities and Exchange Commission, Investor.gov. As at 24 June 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 24 June 2026. See our methodology. This is general information, not financial, tax, legal or investment advice.