Book Value Per Common Share

Definition of 'Book Value Per Common Share'


A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly.

Formula:


Book Value Per Common Share

Investopedia explains 'Book Value Per Common Share'




Should the company decide to dissolve, the book value per common indicates the dollar value remaining for common shareholders after all assets are liquidated and all debtors are paid.

In simple terms it would be the amount of money that a holder of a common share would get if a company were to liquidate.



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