What is Book Value Calculator?
Calculate book value per share (BVPS) and Price-to-Book (P/B) ratio for fundamental stock analysis Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
Book value represents the net asset value of a company on a per-share basis. P/B < 1 theoretically means the company trades below its liquidation value. Banks and NBFCs are commonly valued on P/B.
How to Use This Calculator
- Enter total assets of the company (from balance sheet)
- Enter total liabilities (current + non-current)
- Enter total shares outstanding
- Enter current market price per share
- Click Calculate to see book value per share and P/B ratio
Worked Example
Total Assets: ₹5,000 Cr | Liabilities: ₹3,000 Cr | Net Worth: ₹2,000 Cr | Shares: 100 Cr | BVPS: ₹20 | Price: ₹80 → P/B = 4×
Why Use This Tool?
- Identify potentially undervalued stocks trading near or below book value
- Assess financial strength and asset backing per share
- Key metric for valuing banks, NBFCs, and asset-heavy companies
- Combine with ROE for complete fundamental picture
Frequently Asked Questions
What is Book Value Per Share?
Book value per share (BVPS) is the net asset value of a company divided by its total shares outstanding. It represents what shareholders would theoretically receive per share if the company was liquidated. BVPS = (Total Assets − Total Liabilities) / Total Shares.
What P/B ratio is considered good for stocks?
P/B ratios vary by sector. Banking stocks: 1-3× P/B is normal. IT and asset-light companies: 5-15× P/B. Manufacturing: 1.5-4×. A P/B below 1 may indicate undervaluation, but also check ROE — a company with poor ROE deserves low P/B.
How is book value different from market value?
Book value is based on accounting records (historical cost of assets minus liabilities). Market value (market cap) reflects investor sentiment, future growth expectations, and intangible assets. High-quality companies with strong brand and earnings power trade at large premium to book value.
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