Fundamental Glossary / Valuation Ratios
Book Value Per Share (BVPS)
Shareholders' equity divided by the number of shares. It is the accounting residual behind each share.
Formula
Shareholders' equity / shares outstanding. Tangible BVPS subtracts goodwill and other intangibles first.
What it means
BVPS is the raw material of the P/B ratio. It grows when the company retains profit, and it falls when there are losses, write-downs, or dividends larger than earnings.
Buybacks reduce both equity (cash leaves) and the share count. The effect on BVPS depends on whether shares are bought above or below book.
How to read it
Rising BVPS alongside a stable or rising return on equity is a healthy pattern. Rising book value with a collapsing return can mean the company is retaining earnings it cannot invest well.
What to watch
Book value is an accounting number. Revaluations, brand value that was never booked, and goodwill from old acquisitions all sit between BVPS and the cash a liquidation would actually raise.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.