Book Value Per Share Formula in Excel

Understanding Book Value Per Share

The Book Value Per Share metric evaluates a company's net asset value per share by dividing the book value of shareholder equity by total shares outstanding. Use this formula to:

• Quickly determine the per-share equity portion of a business.
• Gain insights into whether a stock might be over- or undervalued.
• Conduct fundamental analysis using real-time or near real-time data from MarketXLS.

When you want a quick snapshot of how much each share of a company is backed by net assets, the Book Value Per Share formula is an essential tool. It helps validate a company's financial stability and compare its market price to its net asset value.

Syntax and Parameters

Use the BookValuePerShare function directly in any Excel cell where MarketXLS is installed.

=BookValuePerShare(Symbol)

?? Note: If the symbol is invalid or data is unavailable, the function returns "NA".

Return Value

• Returns a numeric value indicating Book Value Per Share.
• Returns "NA" if the symbol is invalid or if there is an issue retrieving data.

? Pro Tip: Because this formula fetches data from an external API, consider limiting frequent recalculations or using Excel’s manual calculation mode to enhance performance.

Examples and Usage

Basic Example

Retrieve the book value per share for Microsoft:

=BookValuePerShare("MSFT")

Using Different Symbol Types

• Indices:

  =BookValuePerShare("^SPX")

• Options:

  =BookValuePerShare("@MSFT 110122C00020000")

• Crypto:

  =BookValuePerShare("BTCUSD:DEFAULT")

Advanced Scenario

Compare a stock’s share price to its book value per share to assess whether it’s trading at a premium or discount:

1. In cell A1, enter the stock symbol (e.g., MSFT).
2. In cell B1, retrieve the current share price (using MarketXLS or another function).
3. In cell C1, use:

   =BookValuePerShare(A1)

4. In cell D1, create a ratio by dividing the price in B1 by the book value per share in C1.

?? Note: Book Value Per Share doesn’t take future growth prospects into account. Consider using more advanced metrics (like P/E, PEG Ratio, or forward P/E) alongside book value.

Common Questions

1. How do I handle invalid or unavailable symbols?

   • The function returns "NA" for invalid or unavailable symbols. Double-check spelling, ensure you have a valid MarketXLS license, and confirm real-time data availability.

2. What kind of data source does BookValuePerShare use?

   • It retrieves data via MarketXLS APIs. You need an active license and internet connectivity.

3. Is there a performance concern with multiple calls?

   • Yes. Repeated calls to the API can slow down workbooks. Use Excel’s manual calculation mode or limited recalculations if performance is an issue.

4. Can I directly input a date into this function?

   • This function does not require a date parameter, so date inputs are not applicable.

5. Does Book Value Per Share reflect market sentiment?

   • No. Book Value Per Share offers insight into the company’s net asset value but does not factor in market speculation or investor sentiment. Combine it with other valuation metrics for a full analysis.