Book value of a company represents assets minus liabilities of the business. It's the amount that will be distributed to stockholders in case the company is liquidated. If Book value is negative, it means company's liabilities exceeds assets. Its also called shareholders equity or net assets of a company. To calculate Book value per share or BVPS, you need to divide … [Read more...] about How to calculate Book value per share of a company – BVPS
financial statement analysis
How to calculate Price to earnings (PE) ratio and its importance in Investing
Price to earnings (PE) ratio simply describes the relationship between the current market price and the earnings per share (EPS) of the stock. You will get a stock’s current Price to earnings ratio by dividing the price by the current earnings per share. PE ratio is also popularly known as earnings multiple. Here is the mathematical formula to calculate PE … [Read more...] about How to calculate Price to earnings (PE) ratio and its importance in Investing
A Beginner’s Guide to Financial Statements
In a company, shareholders provide funds to buy equipment, inventory and other assets to get started the business. Managers, in conjunction with shareholders, run the business for profit. The business can be anything either buying and selling goods or rendering services to customers. In a business, revenue comes from the sale of goods and services. After deducting the cost … [Read more...] about A Beginner’s Guide to Financial Statements