Book value per share is the amount that would be paid to shareholders if a company liquidated and distributed its reported shareholders' equity equally among outstanding shares. It is calculated by taking shareholders' equity and dividing by the number of outstanding shares, taking into account multiple share classes by apportioning equity between them first.

1. Book Value Per Share
Is the amount that would be paid on each
share assuming the entity is liquidated and
the amount available to shareholders is
exactly the amount reported as
shareholders’ equity.

2. Where there is only one class of share
capital, the formula for the computation of
book value is:

3. Where there are two classes of share
capital, it is necessary to apportion the
shareholders’ equity between the
preference share and ordinary share.
The book value per share should then
be computed as follows:

4. PREFERENCE
ORDINARY