Book Value of Equity Per Share (BVPS)

Search Dictionary

Definition of 'Book Value of Equity Per Share (BVPS)'

The book value of equity per share (BVPS) is a financial ratio that measures a company's book value per share of common stock. It is calculated by dividing the company's total shareholders' equity by the number of its outstanding common shares.

The book value of equity is the value of a company's assets minus its liabilities. It is a measure of the company's net worth. The number of outstanding common shares is the number of shares of common stock that are currently held by shareholders.

The BVPS is a useful metric for investors because it provides a measure of a company's financial health. A high BVPS indicates that a company has a strong balance sheet and is in a good financial position. A low BVPS, on the other hand, can indicate that a company is in financial trouble.

The BVPS can be used to compare companies within the same industry. A company with a higher BVPS than its competitors is generally considered to be in a stronger financial position. However, it is important to note that the BVPS is only one measure of a company's financial health. Other factors, such as earnings and cash flow, should also be considered when evaluating a company's financial health.

Here are some additional points to keep in mind when using the BVPS:

* The BVPS is based on historical cost, which may not reflect the current market value of a company's assets.
* The BVPS does not take into account intangible assets, such as goodwill and patents.
* The BVPS can be manipulated by companies through accounting practices.

Overall, the BVPS is a useful metric for investors, but it should be used in conjunction with other financial ratios to get a more complete picture of a company's financial health.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.