BPS (Book-value Per Share) is a company's net assets (shareholders' equity) divided by its number of shares outstanding.
BPS (¥) = Net Assets (Shareholders' Equity) ÷ Shares Outstanding
What it measures
BPS converts the net assets a company has accumulated over time into a per-share figure. Comparing the share price to BPS gives PBR (Price to Book Ratio).
How to read it
BPS is based on book (accounting) net assets, which can differ from the actual current market value of a company's assets.
Issuing new shares (a capital increase) raises the share count, which can dilute (lower) BPS.
This article is provided for general informational purposes only and does not recommend or solicit the purchase or sale of any specific investment method or security. Final investment decisions are your own responsibility.
Frequently Asked Questions
Does BPS set a floor for the share price?
BPS is a rough proxy for the theoretical value shareholders would receive if a company were liquidated, but book net assets often differ from the actual market value of those assets, so BPS does not guarantee a floor for the share price.
Where can I find a company's BPS?
It can be calculated by dividing total net assets, as reported in a company's earnings report or annual securities report, by the number of shares outstanding. It is also often listed directly on brokerage stock information pages.
