Definition Equity Per Share

Assets liabilities equity.

Definition equity per share. Equity value commonly referred to as the market value of equity or market capitalization can be defined as the total value of the company that is attributable to equity investors. Book value of equity per share abbreviated as bvps is a company s available equity to common shareholders apportioned by the number of outstanding common shares. Generally speaking equity is the value of an asset less the amount of all liabilities on that asset. Example sentences with equity per share translation memory.

And so that means that if you take its 3 billion of equity divide by 500 million shares. Well we have 20 million of equity divided by two million shares which gets us 10 of equity per share. Equity share holders do not enjoy any preferential rights with regard to repayment of capital and dividend. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares.

The resulting number serves as an indicator of a company s profitability. Earnings per share eps is calculated as a company s profit divided by the outstanding shares of its common stock. In finance equity is ownership of assets that may have debts or other liabilities attached to them. Equity shares are the main source of finance of a firm.

Equity per share in english translation and definition equity per share dictionary english english online. Book value is based on the amount the company has invested in its assets but not their current market value. It can be represented with the accounting equation. This figure represents the minimum value of a company s.

For example if someone owns a car worth 9 000 and owes 3 000 on the loan used to buy the car then the difference of 6 000 is equity. It is calculated by multiplying a company s share price by its number of shares outstanding.