Enter the total equity of a company and the number of outstanding shares into the calculator to determine the equity value per share. This calculator helps in assessing the value of each share based on the company’s total equity.
Equity Value Per Share Formula
The following formula is used to calculate the equity value per share.
EVPS = TE / OS
Variables:
- EVPS is the equity value per share ($)
- TE is the total equity of the company ($)
- OS is the number of outstanding shares
To calculate the equity value per share, divide the total equity of the company by the number of outstanding shares.
What is Equity Value Per Share?
Equity value per share is a financial metric that represents the portion of a company’s equity that is allocated to each individual share. It is a measure of the value that shareholders would theoretically receive if the company were liquidated. This value is important for investors as it helps them understand the value of their investment in relation to the company’s total equity.
How to Calculate Equity Value Per Share?
The following steps outline how to calculate the Equity Value Per Share.
- First, determine the total equity of the company (TE) in dollars.
- Next, determine the number of outstanding shares (OS).
- Next, gather the formula from above = EVPS = TE / OS.
- Finally, calculate the Equity Value Per Share (EVPS) in dollars.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Total equity of the company (TE) = $1,000,000
Number of outstanding shares (OS) = 100,000
