Learn what book value is, why it's important, and how investors use it to find stocks that are trading at competitive prices. S&P 500 +---% | Stock Advisor +---% ...

You can calculate a company's BVPS using Microsoft Excel. First, enter the value of a common stock , retained earnings , and additional paid-in capital into cells A1 through A3. Then, in cell A4 ...

The book value approach, also called the tangible assets or balance sheet method, values the business by tallying its assets and subtracting liabilities to obtain the net worth, or owner's equity.

You can calculate the price-to-book, or P/B, ratio by dividing a company's stock price by its book value per share, which is defined as its total assets minus any liabilities. This can be useful ...

You can do this for many types of ratios—book value, revenue, operating income, etc. Some methods use several types of ratios to calculate per-share values and an average of all the values would ...