About the Book Value Calculator
What is the Book Value Calculator?
Book value is the value of a company's equity on its balance sheet — what would be left for shareholders if all assets were sold at their book values and all liabilities paid off. Book value per share (BVPS) spreads it across each equity share.
Enter total assets, total liabilities, preference share capital and the number of equity shares (amounts in ₹ crore). Add the share price to see the price-to-book (P/B) ratio, which is widely used to value banks and asset-heavy businesses.
How to use the Book Value Calculator
- Total Assets (₹ crore) (sample: 5,000)
- Total Liabilities (₹ crore) (sample: 3,000)
- Preference Share Capital (₹ crore) (sample: 0)
- Equity Shares Outstanding (crore) (sample: 10)
- Current Share Price (₹, optional for P/B) (sample: 300)
- Press Calculate Book Value (results also refresh as you type). The result card shows the Book Value per Share, along with Shareholders' equity (net worth), Price-to-book (P/B) ratio and Reading.
Formula used
Book value per share = (Total assets − Total liabilities − Preference capital) ÷ Shares outstanding
- P/B ratio = Share price ÷ Book value per share
Shareholders' equity (net worth) = total assets − total liabilities − preference capital.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Total Assets (₹ crore) | 5,000 |
| Total Liabilities (₹ crore) | 3,000 |
| Preference Share Capital (₹ crore) | 0 |
| Equity Shares Outstanding (crore) | 10 |
| Current Share Price (₹, optional for P/B) | 300 |
| Result | Value |
|---|---|
| Book Value per Share | ₹200 |
| Shareholders' equity (net worth) | ₹2,000 crore |
| Price-to-book (P/B) ratio | 1.5× |
| Reading | Trading above book value |
Tips for using the Book Value Calculator
- P/B is most useful for banks, NBFCs and capital-intensive companies; for asset-light businesses it says little.
- A P/B below 1 can signal undervaluation — or problems such as bad loans.
- Book value uses historical costs, which may differ from market values of land or investments.