BPS (Book Value Per Share)
Equity divided by shares outstanding — the book net assets contained in one share. The denominator of PBR.
BPS = Equity (net assets) ÷ Shares outstanding
If BPS keeps rising, the company is seen as growing its net assets.
In plain terms
BPS is the book value left over for shareholders (net assets) if the company sold all its assets today and paid off its debts, divided by the number of shares.
Put simply, it's "the book asset value packed into one share." Looking at how many times BPS the share price is gives you PBR (PBR = share price ÷ BPS).
What it tells you
It's the basis for PBR, which shows where the share price stands relative to book asset value.
When a company piles up profits and grows its equity, BPS grows too. Steadily rising BPS means net assets are accumulating bit by bit.
Formula
BPS = Equity (net assets) ÷ Shares outstanding
What high or low means
If BPS keeps rising, the company is seen as growing its net assets.
If the share price is below BPS (PBR under 1), the stock is trading below its book net assets.
BPS is a book (accounting) value, so intangibles like brand or technology are barely reflected. That's why an asset-light company can have a small BPS while its actual value is large.
When equity shifts due to share buybacks or accounting entries that write down asset values, BPS swings as well.
Metrics to read alongside
See it in real stocks
Search US stocks on Stocklore to see SEC-filing-based financial metrics alongside the sector benchmark.
This explanation is for information and reference only and is not a recommendation to buy or sell any security. Investment decisions and their consequences are your own.