Book Value Per Share

Book Value Per Share - The book value per share is calculated based on the book value of a company, which is then divided by out many shares the company has outstanding. The book value is the company's stock equity recorded on its balance sheet by taking its total assets less all its liabilities, preferred stock, and intangible assets. When a company cannot pay its bills, has to liquidate, or ends up in receivership or bankruptcy, this is helpful information and provides the creditors with what money is left to pay them out. Creditors are paid out in specific order and may not get enough money back to meet the debt that is owed to them.