Book Value Per Common Share
A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly.
Formula: ...
Book Value per Common Share
Book value per common share is the net assets available to common stockholders divided by the shares outstanding, where net assets represent stockholders' equity less preferred stock.
To calculate book value per common share:
(share capital of common stock + contributed surplus + retained earnings) / number of common shares outstanding
General value guidelines are as follows: ...
The sum arrived at is divided by the number of common shares outstanding and the result is book value per common share. Book value of the assets of a company or a security may have little relationship to market value. (see Price/Book Ratio) ...
 See also: Shares, Market, Market Value, Liabilities, Stock
  
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