Book Value Per Share
Select Equity |
Book Value per Share | = | Common EquityAverage Shares |
Book Value Per Share In A Nutshell
Book value per share will help people who own the share determine the value of their shares if the company should close and liquidate their assets and paying anyone they owe money too. This is important because if you invest in companies that are not stable and may be speculative, you want to know how much you will potentially receive should the company go under. Obviously one should not invest much into these types of situations, but there are times and places where this could be beneficial.
Book value per share is taking the total shareholder equity and subtracting out the preferred equity, and then dividing it by the shares outstanding. A simple formula that will give you the book value you are searching for.
Closer Look at Book Value Per Share
Book value per share could also be a way to measure the potential risk. If you determine a book value to be $10 and the stock is trading above the book value, you could use that as a stop loss. Measuring risk is important to any portfolio and should be done carefully because profits are good, but being safe from risk is also just as good.
Book value will likely change because outstanding share may fluctuate as stock is either pumped into the market or taken out. Also, be sure to look at the top of the equation and understand what is fueling these numbers and how it might give you an edge in investing. If you get stuck, there are wonderful tools on the Internet that can help show you how people use this in their research. Join an investing community and see how others are using this tool in their research. This will allow you to see real time examples and as real time questions. Lastly, if you need more guidance, reach out to an investing professional and they can help show you the best ways to use this tool and implement it in your current investing research.
All Fundamental Indicators
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectOther Consideration for investing
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |