The book value of equity per share (BVPS) measures a stock's 澳洲幸运5官方开奖结果体彩网:valuation that allows investors to assess the 澳洲幸运5官方开奖结果体彩网:financial health of a company. The BVPS can gauge whether a stock is 澳洲幸运5官方开奖结果体彩网:undervalued or 澳洲幸运5官方开奖结果体彩网:overvalued by using a snapshot ♑of ಞits current common equity and shares outstanding.

The BVPS is calculated by dividing a company's common equity value by its total number of shares outstanding:

For example, assume company ABC's value of common equity is $100 million, and it has shares outstanding of 10 million. Therefore, its BVPS is $10 ($100 million/10 million).

You can calculate a company's BVPS using Microsoft Excel. First, enter the value of a 澳洲幸运5官方开奖结果体彩网:common stock, 澳洲幸运5官方开奖结果体彩网:retained earnings, and additional paid-in capital into cells A1 through A3. Then, in cell A4, enter the formula "=A1 + A2 + A3". This yields the value🐼 of common equity.

Then, enter the formula for the BVPS. Enter the total number of shares outstanding into cell A5. Then in cell A6, enter the formula "=A4 / A5".

For example, assume company DEF has common shares of $11 million, retained earnings of $5 million, additional paid-in capital of $2 million and 澳洲幸运5官方开奖结果体彩网:outstanding shares of 1 million. You would enter "=$11000000" into cell A1, "=$5000000" into cell A2, "=$2000000" into cell A3 and "=1000000" into cell A5. In cell A4, enter the corresponding formul🐷a for the value of common equity. The resulting BVPS is $18. If company DEF's current stock price is trading below $18, it is currently undervalued.