How Do I Figure Book Value Per Share?

Book value is the amount of an asset in the business records. The book value may fluctuate when brought into the open market. Companies use book value in order to figure out the amount of money recovered that was spent on a particular asset. Book value is equal to the amount spend on an asset subtracting depreciation.

Book value is also known as net asset value. In order to figure out the book value per share, it is important to know the net asset value of all the assets. Once the net asset value is calculated, next thing is to find the total number of shares the company has issued. For example, if the company has issued 100,000 shares and the net asset value of the company is £5.6 million, so its book value per share would be £56.

So an increase in common stock shares will decrease the book value per common share?