How do I calculate the book value?
In order to calculate Book value,
you should subtract the accumulated depreciation of a company's assets from the asset's original cost. This calculation is also known as the net asset value of a company. The result is the Book value. This value may be lower than the market value of the asset or company. To further assess the value of the company, you can use the Book value per share (BVPS). Create a new blank spreadsheet and label the columns as "Total Equity" and "Number of Shares."
In the "Total Equity" column, list the total equity value of the company. This includes the sum of common stock, retained earnings, and any other equity components. Each equity item should be listed in a separate row.
In the adjacent column, assign a value to each equity item.
Use the appropriate formula to calculate the total equity. This could be a simple addition of the equity values or a more complex formula depending on the structure of your data.
In the "Number of Shares" column, list the total number of shares outstanding for the company.
Assign a value to each row representing the number of shares for the corresponding equity item.
Calculate the sum of the total number of shares using the appropriate formula.
Divide the total equity value by the total number of shares to calculate the Book Value Per Share (BVPS). Use the appropriate formula to perform this calculation. For example, if the total equity is in cell A2 and the total number of shares is in cell B2, enter "
=A2/B2" in a new cell to calculate BVPS.
Format the resulting BVPS cell as desired, including decimal places or currency symbols, for better presentation. Any of these metrics can be calculated using Sourcetable.