Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 4 terms
Net worth divided by the number of shares outstanding.
The anchor of a lender’s valuation, because its assets are financial and its return is earned on the capital base. For a business whose value sits in brands or people it says very little.
The rise in book value per share produced by issuing new shares above the existing book value — and the fall produced by issuing below it.
Why the identical press release is different news at different prices. The same money funds the same loans; whether existing holders end up with more book per share or less depends entirely on what the new shareholders paid.
The rate at which a bank's book value per share compounds — roughly its return on equity less whatever it pays out.
Over long periods the share price tracks this far more closely than it tracks any single year of earnings.
Price divided by book value per share.
Essential for banks. Nearly meaningless for asset-light businesses whose real assets are people.