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# How to Calculate Book Value per Ordinary Share - Formula, Example

## How to Calculate Book Value per Ordinary Share - Definition

#### Definition:

Book value per share is a measure utilized by owners of mutual shares in a company to analyze the level of safety related with every individual share after all debts are paid appropriately.

#### Formula:

Book value per Share = (Stock holders equity - Preferred Stock) / Total outstanding shares

#### Example :

International corporation has \$2000000 of stockholders equity, \$500000 of preferred stock, and total of \$300000 shares outstanding during the measurement period. Calculate the Book value per Share of the international corporation.

##### Given,

Stock holders equity = \$2000000 Preferred Stock = \$500000 Total outstanding shares = \$300000

##### To Find,

Book value per Ordinary Share

##### Solution :

Book value per Share = (Stock holders equity - Preferred Stock) / Total outstanding shares = (2000000 - 500000) / 300000 = 1500000 / 300000 = \$ 5