Basic Earnings per Share Calculator
Calculate basic earnings per share using its different share denominator.
Business
Ordinary Book Value per Share Calculator
Measure ordinary shareholders' book equity per outstanding share at a reporting date. Use the matching reporting-date share count rather than the weighted-average count used for earnings per share.
Your numbers
How the calculation works
Calculate book equity per ordinary share from reported equity or assets less liabilities. The tool deducts the supplied preferred equity claim before dividing by ordinary shares outstanding at the same reporting date.
Book value per ordinary share = (total shareholders’ equity − preferred equity claim) / ordinary shares outstanding. Balance mode derives equity as assets − liabilities.
Establish total book equity
Use the entered equity figure or subtract liabilities from assets. These are accounting carrying amounts, not automatically current sale values of the assets and obligations.
Isolate ordinary shareholders' equity
Subtract the preferred claim from total equity. A negative result is preserved because an accounting deficit should not silently be converted to zero.
Divide by outstanding shares
Divide ordinary book equity by a positive ordinary-share count. The result allocates the supplied book amount equally across those shares for this ratio.
Worked example: Ordinary book equity
Sample inputs demonstrate the method. They are not a forecast or product offer.
Total equity of €500,000 less a €100,000 preferred claim leaves €400,000 for ordinary shareholders. Dividing by 100,000 ordinary shares gives the first example book value of €4 per share.
- Equity input
- Reported total equity
- Total shareholders’ equity
- 500000
- Preferred equity claim
- 100000
- Ordinary shares outstanding
- 100000
Expected result
- Ordinary shareholders’ book equity
- €400,000.00
- Book value per ordinary share
- €4.00
Worked example: Negative equity
Sample inputs demonstrate the method. They are not a forecast or product offer.
- Equity input
- Assets less liabilities
- Total assets
- 100000
- Total liabilities
- 130000
- Preferred equity claim
- 0
- Ordinary shares outstanding
- 10000
Expected result
- Book value per ordinary share
- -€3.00
Understanding your result
Book value per share does not establish a quoted share price, intrinsic valuation or the proceeds shareholders would receive on liquidation. Asset realisation and claim priorities may produce different outcomes.
Comparisons need consistent accounting policies and capital structures. Changes in share count or recognised asset values can alter the ratio without showing the same change in operating performance.
Questions you might have
Why is the share count different from basic EPS?
Book value is measured at a point in time, so it uses the corresponding shares outstanding. EPS covers a period and uses a weighted-average share count.
Choosing the right inputs
- Equity input
- Use reported total equity when that balance is available, or reconcile total assets and liabilities. Both approaches should describe the same accounting perimeter.
- Preferred equity claim
- Enter the preferred equity claim that must be excluded to isolate ordinary shareholders' book equity. Do not deduct it again if the starting amount already excludes it.
- Ordinary shares outstanding
- Use ordinary shares outstanding consistent with the equity date. This is a balance-sheet ratio, not an EPS calculation using weighted-average shares over an earnings period.
Common mistakes to avoid
- Do not use market capitalisation in the book-equity field while describing the output as an accounting measure.
- Do not subtract preferred claims twice or mix year-end equity with an unrelated weighted-average share count.
Assumptions to check
- Use amounts in one currency and one reporting period. Results are labelled EUR; the arithmetic also works for another consistent currency.
- Use the reporting-date share count matching the equity balance, not the time-weighted EPS denominator. Preferred claims must follow the intended book-value definition.
Sources and method
Read our calculation and testing approach.