Book Value Per Share
Stockholders' equity divided by shares outstanding.
Definition
Book value per share represents the accounting net worth attributable to each common share. It serves as a theoretical liquidation value and is a key reference point for bank stock valuation alongside tangible book value per share.
Formula
BVPS = Total Stockholders' Equity / Shares Outstanding
Why It Matters
For banks, the relationship between stock price and book value per share (the P/B ratio) is the most commonly cited valuation metric. Consistent growth in BVPS signals value creation for shareholders.