Book value example
To calculate the book value of a company, you would use the total amount of tangible assets and subtract the liabilities. For example, ABC Limited has $320 million in assets and $190 million in liabilities. In this case, the company’s book value will be $130 million ($320 million – $190 million).
To determine the book value per share in the company, you would divide the book value by the number of shares in circulation. For example, $130 million divided by 500,000 shares = $260.