Is a $5.00 book value per share high or low?
On the defaults — $10,000,000 of total equity, $2,000,000 of preferred equity and 1,600,000 shares outstanding — the book value per share is $5.00. A $5.00 BVPS is neither high nor low on its own: it is an accounting figure, not a market price. What matters is the market price next to it — a share trading at $4.00 sells below book value, a share trading at $10.00 sells at twice book value. Banks and insurers are the classic BVPS stocks: their assets are mostly financial, so book value tracks real value closely. A BVPS of $0.00 means there is no common equity at all — the preferred holders own everything the company owns. A negative BVPS means the preferred holders are owed more than the company owns — a data problem, not a real value.
Three things about the model are worth stating plainly.
First, the book value per share is $8,000,000 ÷ 1,600,000 = $5.00. Second, the common equity needed for a $6.00 BVPS is $6.00 × 1,600,000 = $9,600,000, which is $11,600,000 of total equity at the same preferred equity. And third, the shares outstanding allowed for a $6.00 BVPS is $8,000,000 ÷ $6.00 = 1,333,333.33; all listed in Accuracy & limitations.
The worked example, line by line
Setup: $10,000,000 of total equity, $2,000,000 of preferred equity, 1,600,000 shares outstanding, target BVPS $6.00.
Line 1 — the common equity. The common equity is $10,000,000 − $2,000,000 = $8,000,000.
Line 2 — the book value per share. The BVPS is $8,000,000 ÷ 1,600,000 = $5.00.
Line 3 — the common equity needed. The common equity needed for a $6.00 BVPS is $6.00 × 1,600,000 = $9,600,000.
Line 4 — the total equity needed. The total equity needed for a $6.00 BVPS is $9,600,000 + $2,000,000 = $11,600,000.
Line 5 — the shares allowed. The shares outstanding allowed for a $6.00 BVPS is $8,000,000 ÷ $6.00 = 1,333,333.33.
Every branch, checked
Total equity $8,400,000: Total equity $8,400,000.00; preferred equity $2,000,000.00; common equity $6,400,000.00; shares outstanding 1,600,000; book value per share $4.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,066,666.67 — With total equity of $8,400,000 the BVPS is $4.00 — $1.00 a share below the default.
Total equity $9,600,000: Total equity $9,600,000.00; preferred equity $2,000,000.00; common equity $7,600,000.00; shares outstanding 1,600,000; book value per share $4.75; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,266,666.67 — With total equity of $9,600,000 the BVPS is $4.75 — a quarter below the $5.00 default.
Total equity $10,800,000: Total equity $10,800,000.00; preferred equity $2,000,000.00; common equity $8,800,000.00; shares outstanding 1,600,000; book value per share $5.50; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,466,666.67 — With total equity of $10,800,000 the BVPS is $5.50 — halfway to the $6.00 target.
Total equity $11,600,000: Total equity $11,600,000.00; preferred equity $2,000,000.00; common equity $9,600,000.00; shares outstanding 1,600,000; book value per share $6.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,600,000.00 — With total equity of $11,600,000 the BVPS is $6.00 — the target itself — and $9,600,000 of common equity is needed.
Total equity $13,200,000: Total equity $13,200,000.00; preferred equity $2,000,000.00; common equity $11,200,000.00; shares outstanding 1,600,000; book value per share $7.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,866,666.67 — With total equity of $13,200,000 the BVPS is $7.00 — $2.00 a share above the default.
Total equity $14,800,000: Total equity $14,800,000.00; preferred equity $2,000,000.00; common equity $12,800,000.00; shares outstanding 1,600,000; book value per share $8.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 2,133,333.33 — With total equity of $14,800,000 the BVPS is $8.00 — the top of the branch range.
BVPS bars — total equity $12,000,000, shares outstanding 2,000,000, preferred equity $0: total equity $12,000,000: book value per share $6.25, common equity $10,000,000; shares outstanding 2,000,000: book value per share $4.00, common equity $8,000,000; preferred equity $0: book value per share $6.25, common equity $10,000,000 — Total equity of $12,000,000 gives a BVPS of $6.25; 2,000,000 shares give a BVPS of $4.00; preferred equity of $0 gives a BVPS of $6.25.
The reverses, worked backwards
Smallest total equity for the BVPS to reach $6.00: At the displayed $11,600,000 the figures are Total equity $11,600,000.00; preferred equity $2,000,000.00; common equity $9,600,000.00; shares outstanding 1,600,000; book value per share $6.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,600,000.00. At the displayed $11,600,000 the BVPS is $6.00 (exactly $6.00). At $11,599,999.00 the BVPS is $6.00 (unrounded $5.999999375 — print it) — below the $6.00 target — so $11,600,000 is the smallest whole-dollar total equity for the BVPS to reach $6.00.
Largest shares outstanding for the BVPS to STAY at or above $6.00: At the displayed 1,333,333 the figures are Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,333,333; book value per share $6.0000015; common equity needed for the $6.00 target $7,999,998.00; shares outstanding allowed for the $6.00 target 1,333,333.333333333. At the displayed 1,333,333 the BVPS is $6.00 (unrounded $6.0000015 — print it). At 1,333,334 shares the BVPS is $6.00 (unrounded $5.999997 — print it) — below the $6.00 target — so 1,333,333 is the largest whole-share shares outstanding for the BVPS to stay at or above $6.00.
Smallest total equity for the BVPS to reach $5.50: At the displayed $10,800,000 the figures are Total equity $10,800,000.00; preferred equity $2,000,000.00; common equity $8,800,000.00; shares outstanding 1,600,000; book value per share $5.50; common equity needed for the $5.50 target $8,800,000.00; shares outstanding allowed for the $5.50 target 1,600,000.00. At the displayed $10,800,000 the BVPS is $5.50 (exactly $5.50). At $10,799,999.00 the BVPS is $5.50 (unrounded $5.499999375 — print it) — below the $5.50 target — so $10,800,000 is the smallest whole-dollar total equity for the BVPS to reach $5.50.
Largest shares outstanding for the BVPS to STAY at or above $5.50: At the displayed 1,454,545 the figures are Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,454,545; book value per share $5.500001719; common equity needed for the $5.50 target $7,999,997.50; shares outstanding allowed for the $5.50 target 1,454,545.454545455. At the displayed 1,454,545 the BVPS is $5.50 (unrounded $5.500001719 — print it). At 1,454,546 shares the BVPS is $5.50 (unrounded $5.499997938 — print it) — below the $5.50 target — so 1,454,545 is the largest whole-share shares outstanding for the BVPS to stay at or above $5.50.
Smallest total equity for the BVPS to reach $7.00: At the displayed $13,200,000 the figures are Total equity $13,200,000.00; preferred equity $2,000,000.00; common equity $11,200,000.00; shares outstanding 1,600,000; book value per share $7.00; common equity needed for the $7.00 target $11,200,000.00; shares outstanding allowed for the $7.00 target 1,600,000.00. At the displayed $13,200,000 the BVPS is $7.00 (exactly $7.00). At $13,199,999.00 the BVPS is $7.00 (unrounded $6.999999375 — print it) — below the $7.00 target — so $13,200,000 is the smallest whole-dollar total equity for the BVPS to reach $7.00.
Largest shares outstanding for the BVPS to STAY at or above $7.00: At the displayed 1,142,857 the figures are Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,142,857; book value per share $7.000000875; common equity needed for the $7.00 target $7,999,999.00; shares outstanding allowed for the $7.00 target 1,142,857.142857143. At the displayed 1,142,857 the BVPS is $7.00 (unrounded $7.000000875 — print it). At 1,142,858 shares the BVPS is $7.00 (unrounded $6.99999475 — print it) — below the $7.00 target — so 1,142,857 is the largest whole-share shares outstanding for the BVPS to stay at or above $7.00.
A warning about the neighbours: every neighbour above sits one dollar or one share from the star — one dollar of total equity or one share outstanding — and every neighbour displays as the target when rounded to two decimals, yet sits below or above it. The reverses have exact closed forms: the total equity needed is the target times the shares outstanding plus the preferred equity, and the shares outstanding allowed is the common equity divided by the target. The page prints the unrounded BVPS in full so the rounding does not mislead you: 5.999999375, 6.000000625, 6.0000015, 5.999997, 5.499999375, 5.500000625, 5.500001719, 5.499997938, 6.999999375, 7.000000625, 7.000000875 and 6.99999475.
What the defaults assume
The defaults are $10,000,000 of total equity, $2,000,000 of preferred equity, 1,600,000 shares outstanding and a target BVPS of $6.00 — Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,600,000; book value per share $5.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,333,333.33. With Total equity $8,400,000, Total equity $8,400,000.00; preferred equity $2,000,000.00; common equity $6,400,000.00; shares outstanding 1,600,000; book value per share $4.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,066,666.67. With Total equity $9,600,000, Total equity $9,600,000.00; preferred equity $2,000,000.00; common equity $7,600,000.00; shares outstanding 1,600,000; book value per share $4.75; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,266,666.67. With Total equity $10,800,000, Total equity $10,800,000.00; preferred equity $2,000,000.00; common equity $8,800,000.00; shares outstanding 1,600,000; book value per share $5.50; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,466,666.67. With Total equity $11,600,000, Total equity $11,600,000.00; preferred equity $2,000,000.00; common equity $9,600,000.00; shares outstanding 1,600,000; book value per share $6.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,600,000.00. With Total equity $13,200,000, Total equity $13,200,000.00; preferred equity $2,000,000.00; common equity $11,200,000.00; shares outstanding 1,600,000; book value per share $7.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,866,666.67. With Total equity $14,800,000, Total equity $14,800,000.00; preferred equity $2,000,000.00; common equity $12,800,000.00; shares outstanding 1,600,000; book value per share $8.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 2,133,333.33. With BVPS bars — total equity $12,000,000, shares outstanding 2,000,000, preferred equity $0, total equity $12,000,000: book value per share $6.25, common equity $10,000,000; shares outstanding 2,000,000: book value per share $4.00, common equity $8,000,000; preferred equity $0: book value per share $6.25, common equity $10,000,000. With Total equity $0, preferred equity $0, Total equity $0.00; preferred equity $0.00; common equity $0.00; shares outstanding 1,600,000; book value per share $0.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 0.00 — no equity at all, so each share carries zero book value. With Total equity −$2,000,000, Total equity −$2,000,000.00; preferred equity $0.00; common equity −$2,000,000.00; shares outstanding 1,600,000; book value per share −$1.25; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target −333,333.333333333 — negative equity, shown with a note, never hidden. With Shares outstanding 0, Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 0; book value per share undefined — there are no shares to divide the common equity by — the BVPS is undefined, shown as undefined with that note, never a crash and never a made-up number. With Total equity $10,000,001, Total equity $10,000,001.00; preferred equity $2,000,000.00; common equity $8,000,001.00; shares outstanding 1,600,000; book value per share $5.000000625; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,333,333.50 — unrounded $5.000000625 — displays $5.00 but sits above $5.00 unrounded. With Shares outstanding 1,600,001, Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,600,001; book value per share $4.999996875; common equity needed for the $6.00 target $9,600,006.00; shares outstanding allowed for the $6.00 target 1,333,333.333333333 — unrounded $4.999996875 — displays $5.00 but sits below $5.00 unrounded. With Total equity $1,000,000, preferred equity $2,000,000, Total equity $1,000,000.00; preferred equity $2,000,000.00; common equity −$1,000,000.00; shares outstanding 1,600,000; book value per share −$0.625; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target −166,666.666666667 — common equity of −$1,000,000, so the BVPS is −$0.625 — displays −$0.63. With BVPS bars, total equity $9,000,000: book value per share $4.38 (unrounded $4.375), common equity $7,000,000; shares outstanding 1,000,000: book value per share $8.00, common equity $8,000,000; preferred equity $5,000,000: book value per share $3.13 (unrounded $3.125), common equity $5,000,000 — the bars show the rounding in the open.
A note on the rounding: the BVPS is displayed to two decimals, half-up. At $11,599,999 of total equity the unrounded BVPS is $5.999999375 — it displays as $6.00 but is below the $6.00 target. At 1,333,334 shares the unrounded BVPS is $5.999997 — it displays as $6.00 but is below the $6.00 target. At $10,800,000 of total equity the unrounded BVPS is $5.50 exactly; at $10,799,999 it is $5.499999375 — it displays as $5.50 but is below the $5.50 target. At $10,000,001 of total equity the unrounded BVPS is $5.000000625 — it displays as $5.00 but sits above $5.00 unrounded. The page prints the unrounded BVPS values so the rounding does not mislead you: 5.999999375, 6.000000625, 6.000006, 6.0000015, 5.999997, 5.499999375, 5.500000625, 5.5000055, 5.500001719, 5.499997938, 6.999999375, 7.000000625, 7.000007, 7.000000875, 6.99999475, 5.000000625, 4.999996875.
Output · formula · meaning
| Output | Formula | What it means |
|---|
| Total equity | input | $10,000,000.00. |
| Preferred equity | input | $2,000,000.00. |
| Common equity | total equity − preferred equity | $8,000,000.00. |
| Shares outstanding | input | 1,600,000. |
| Target book value per share | input | $6.00. |
| Book value per share | common equity ÷ shares outstanding | $5.00. |
| Common equity needed for the $6.00 target | target BVPS × shares outstanding | $9,600,000.00. |
| Total equity needed for the $6.00 target | common equity needed + preferred equity | $11,600,000.00. |
| Shares outstanding allowed for the $6.00 target | common equity ÷ target BVPS | 1,333,333.33. |
| Verdict | what each share is worth on the books | book value per share $5.00 — $8,000,000.00 of common equity spread over 1,600,000 shares. |
| Reverse: Smallest total equity for the BVPS to reach $6.00 | step | $11,600,000 → $11,600,000. |
| Below the revr1 star | neighbor | Total equity $11,599,999.00; preferred equity $2,000,000.00; common equity $9,599,999.00; shares outstanding 1,600,000; book value per share $5.999999375; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,599,999.833333333. |
| Above the revr1 star | neighbor | Total equity $11,600,001.00; preferred equity $2,000,000.00; common equity $9,600,001.00; shares outstanding 1,600,000; book value per share $6.000000625; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,600,000.166666667. |
| Reverse: Largest shares outstanding for the BVPS to STAY at or above $6.00 | step | 1,333,333 → 1,333,333. |
| Below the revr2 star | neighbor | Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,333,332; book value per share $6.000006; common equity needed for the $6.00 target $7,999,992.00; shares outstanding allowed for the $6.00 target 1,333,333.333333333. |
| Above the revr2 star | neighbor | Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,333,334; book value per share $5.999997; common equity needed for the $6.00 target $8,000,004.00; shares outstanding allowed for the $6.00 target 1,333,333.333333333. |
| Reverse: Smallest total equity for the BVPS to reach $5.50 | step | $10,800,000 → $10,800,000. |
| Below the revr3 star | neighbor | Total equity $10,799,999.00; preferred equity $2,000,000.00; common equity $8,799,999.00; shares outstanding 1,600,000; book value per share $5.499999375; common equity needed for the $5.50 target $8,800,000.00; shares outstanding allowed for the $5.50 target 1,599,999.818181818. |
| Above the revr3 star | neighbor | Total equity $10,800,001.00; preferred equity $2,000,000.00; common equity $8,800,001.00; shares outstanding 1,600,000; book value per share $5.500000625; common equity needed for the $5.50 target $8,800,000.00; shares outstanding allowed for the $5.50 target 1,600,000.181818182. |
| Reverse: Largest shares outstanding for the BVPS to STAY at or above $5.50 | step | 1,454,545 → 1,454,545. |
| Below the revr4 star | neighbor | Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,454,544; book value per share $5.5000055; common equity needed for the $5.50 target $7,999,992.00; shares outstanding allowed for the $5.50 target 1,454,545.454545455. |
| Above the revr4 star | neighbor | Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,454,546; book value per share $5.499997938; common equity needed for the $5.50 target $8,000,003.00; shares outstanding allowed for the $5.50 target 1,454,545.454545455. |
| Reverse: Smallest total equity for the BVPS to reach $7.00 | step | $13,200,000 → $13,200,000. |
| Below the revr5 star | neighbor | Total equity $13,199,999.00; preferred equity $2,000,000.00; common equity $11,199,999.00; shares outstanding 1,600,000; book value per share $6.999999375; common equity needed for the $7.00 target $11,200,000.00; shares outstanding allowed for the $7.00 target 1,599,999.857142857. |
| Above the revr5 star | neighbor | Total equity $13,200,001.00; preferred equity $2,000,000.00; common equity $11,200,001.00; shares outstanding 1,600,000; book value per share $7.000000625; common equity needed for the $7.00 target $11,200,000.00; shares outstanding allowed for the $7.00 target 1,600,000.142857143. |
| Reverse: Largest shares outstanding for the BVPS to STAY at or above $7.00 | step | 1,142,857 → 1,142,857. |
| Below the revr6 star | neighbor | Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,142,856; book value per share $7.000007; common equity needed for the $7.00 target $7,999,992.00; shares outstanding allowed for the $7.00 target 1,142,857.142857143. |
| Above the revr6 star | neighbor | Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,142,858; book value per share $6.99999475; common equity needed for the $7.00 target $8,000,006.00; shares outstanding allowed for the $7.00 target 1,142,857.142857143. |
| Total equity $8,400,000 | same model | Total equity $8,400,000.00; preferred equity $2,000,000.00; common equity $6,400,000.00; shares outstanding 1,600,000; book value per share $4.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,066,666.67. |
| Total equity $9,600,000 | same model | Total equity $9,600,000.00; preferred equity $2,000,000.00; common equity $7,600,000.00; shares outstanding 1,600,000; book value per share $4.75; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,266,666.67. |
| Total equity $10,800,000 | same model | Total equity $10,800,000.00; preferred equity $2,000,000.00; common equity $8,800,000.00; shares outstanding 1,600,000; book value per share $5.50; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,466,666.67. |
| Total equity $11,600,000 | same model | Total equity $11,600,000.00; preferred equity $2,000,000.00; common equity $9,600,000.00; shares outstanding 1,600,000; book value per share $6.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,600,000.00. |
| Total equity $13,200,000 | same model | Total equity $13,200,000.00; preferred equity $2,000,000.00; common equity $11,200,000.00; shares outstanding 1,600,000; book value per share $7.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,866,666.67. |
| Total equity $14,800,000 | same model | Total equity $14,800,000.00; preferred equity $2,000,000.00; common equity $12,800,000.00; shares outstanding 1,600,000; book value per share $8.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 2,133,333.33. |
| BVPS bars — total equity $12,000,000, shares outstanding 2,000,000, preferred equity $0 | same model | total equity $12,000,000: book value per share $6.25, common equity $10,000,000; shares outstanding 2,000,000: book value per share $4.00, common equity $8,000,000; preferred equity $0: book value per share $6.25, common equity $10,000,000. |
Who uses this
- The value investor checking a bank: they learn $10,000,000 of total equity less $2,000,000 of preferred equity over 1,600,000 shares is a BVPS of $5.00 — and they check the $11,600,000 reverse to see the total equity a $6.00 BVPS needs.
- The analyst screening for stocks below book value: they learn a $5.00 BVPS against a $4.00 market price is a price-to-book ratio below 1 — and they check the 1,333,333 reverse to see the shares outstanding a $6.00 BVPS allows.
- The student learning value measures: they learn the book value per share is common equity divided by shares outstanding — and they check the $10,800,000 reverse to see the total equity a $5.50 BVPS needs.
- The founder tracking per-share book value: they learn $8,000,000 of common equity over 1,600,000 shares is $5.00 a share — and they check the 1,142,857 reverse to see the shares outstanding a $7.00 BVPS allows.
Accuracy & limitations
The math is first-principles: the common equity is total equity minus preferred equity; the book value per share is common equity divided by shares outstanding; the common equity needed for the target is the target BVPS times the shares outstanding; the total equity needed for the target is the common equity needed plus the preferred equity; the shares outstanding allowed for the target is the common equity divided by the target BVPS — all in whole dollars and whole shares, the BVPS displayed to two decimals half-up. At $0 of shares outstanding the BVPS is UNDEFINED — there are no shares to divide the common equity by — the page shows the BVPS as undefined with that note, never a crash and never a made-up number, and no common-equity-needed figure is printed for that case. At −$2,000,000 of total equity the BVPS is −$1.25 — negative common equity means the preferred holders are owed more than the company owns — a data problem, not a real value — so the BVPS is negative and the calculator shows the negative figure with a note, never hides it and never shows “—” for it. At $1,000,000 of total equity and $2,000,000 of preferred equity the common equity is −$1,000,000 and the BVPS is −$0.625 — it displays as −$0.63. What the model cannot do is judge the value: BVPS is an accounting figure, not a market price — it says nothing about whether the assets are really worth their book value, whether intangibles and goodwill inflate the equity, or whether the market agrees. Book value can be stale: property carried at historical cost, brands and software written off, and one-off writedowns can all move it without the business changing. The BVPS differs from the price-to-book ratio: the price-to-book ratio is the market PRICE divided by the BVPS — it tells you what the market pays for each dollar of book value — while the BVPS itself is common equity divided by shares outstanding — it tells you what each share is worth on the books. Use it to see what each share is worth on the books — then check whether the market price agrees.
Cite this calculatorBright Side Kit. “Book Value Per Share Calculator: Work Out BVPS Fast” brightoolbox.com, 2026. Method: Book value per share = (total shareholders’ equity − preferred equity) ÷ shares outstanding; common equity = total equity − preferred equity; common equity needed at the target = target BVPS × shares outstanding; total equity needed at the target = common equity needed + preferred equity; shares outstanding allowed at the target = common equity ÷ target BVPS. Reverses: smallest whole-dollar total equity for the BVPS to reach $6.00 is $11,600,000 (at $11,600,000 the BVPS is $6.00, exactly $6.00; at $11,599,999 the BVPS is $6.00, unrounded $5.999999375 — below the $6.00 target); largest whole-share shares outstanding for the BVPS to stay at or above $6.00 is 1,333,333 (at 1,333,333 the BVPS is $6.00, unrounded $6.0000015; at 1,333,334 the BVPS is $6.00, unrounded $5.999997 — below the $6.00 target); smallest whole-dollar total equity for the BVPS to reach $5.50 is $10,800,000 (at $10,800,000 the BVPS is $5.50, exactly $5.50; at $10,799,999 the BVPS is $5.50, unrounded $5.499999375 — below the $5.50 target); largest whole-share shares outstanding for the BVPS to stay at or above $5.50 is 1,454,545 (at 1,454,545 the BVPS is $5.50, unrounded $5.500001719; at 1,454,546 the BVPS is $5.50, unrounded $5.499997938 — below the $5.50 target); smallest whole-dollar total equity for the BVPS to reach $7.00 is $13,200,000 (at $13,200,000 the BVPS is $7.00, exactly $7.00; at $13,199,999 the BVPS is $7.00, unrounded $6.999999375 — below the $7.00 target); largest whole-share shares outstanding for the BVPS to stay at or above $7.00 is 1,142,857 (at 1,142,857 the BVPS is $7.00, unrounded $7.000000875; at 1,142,858 the BVPS is $7.00, unrounded $6.99999475 — below the $7.00 target). Defaults: Total equity $10,000,000.00; preferred equity $2,000,000.00; common equity $8,000,000.00; shares outstanding 1,600,000; book value per share $5.00; common equity needed for the $6.00 target $9,600,000.00; shares outstanding allowed for the $6.00 target 1,333,333.33 Bright Side Kit. "Book Value Per Share Calculator: Work Out BVPS Fast" https://brightoolbox.com/book-value-per-share-calculator/ Accessed October 27, 2026.
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Frequently asked questions
What is book value per share?
Common equity divided by shares outstanding. On $10,000,000 of total equity, $2,000,000 of preferred equity and 1,600,000 shares outstanding the BVPS is $5.00 — $8,000,000 of common equity spread over 1,600,000 shares.
How do I calculate book value per share?
Subtract the preferred equity from the total equity, then divide by the shares outstanding. $10,000,000 − $2,000,000 = $8,000,000, and $8,000,000 ÷ 1,600,000 = $5.00.
What does a $5.00 book value per share mean?
Each share is worth $5.00 on the books. A $5.00 BVPS against a $4.00 market price sells below book value; against a $10.00 market price it sells at twice book value.
How much equity do I need for a $6.00 BVPS?
$9,600,000 of common equity with 1,600,000 shares outstanding. The smallest whole-dollar total equity for the BVPS to reach $6.00 is $11,600,000. At $11,600,000 the BVPS is $6.00, exactly $6.00.
How many shares can I have and still keep a $6.00 BVPS?
1,333,333 shares with $8,000,000 of common equity. The largest whole-share shares outstanding for the BVPS to stay at or above $6.00 is 1,333,333. At 1,333,333 the BVPS is $6.00, unrounded $6.0000015.
What if shares outstanding is zero?
The BVPS is undefined. At 0 shares outstanding the BVPS is undefined — there are no shares to divide the common equity by — shown as undefined with that note, never a crash and never a made-up number.
What does a negative book value per share mean?
The preferred holders are owed more than the company owns. At −$2,000,000 of total equity the BVPS is −$1.25 — a data problem, not a real value — and the calculator shows the negative figure with a note, never hides it and never shows “—” for it.
How is BVPS different from the price-to-book ratio?
The price-to-book ratio divides the market price by the BVPS. BVPS is common equity divided by shares outstanding — what each share is worth on the books — while the price-to-book ratio tells you what the market pays for each dollar of it.