Assets Per Share Formula:
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Assets Per Share is a financial metric that shows the dollar amount of a company's assets attributable to each outstanding share of common stock. It helps investors understand the asset backing behind each share.
The calculator uses the simple formula:
Where:
Explanation: This calculation divides the company's total assets by the number of shares outstanding to determine how much asset value each share represents.
Details: This metric is particularly useful when analyzing companies in asset-intensive industries. It can help identify potential undervalued stocks when compared to book value per share.
Tips: Enter total assets in currency units and shares outstanding as a whole number. Both values must be positive numbers.
Q1: How is this different from book value per share?
A: Book value per share subtracts liabilities from assets before dividing by shares outstanding, while assets per share uses total assets without considering liabilities.
Q2: What is a good assets per share value?
A: There's no universal "good" value - it depends on the industry and should be compared to the stock price and competitors' metrics.
Q3: Where can I find these numbers?
A: Total assets are on the balance sheet in financial statements. Shares outstanding are typically listed in quarterly reports or financial websites.
Q4: Does this include intangible assets?
A: Yes, it includes all assets reported on the balance sheet unless you specifically exclude them from your calculation.
Q5: Can this be used for preferred stock?
A: For preferred stock, you would typically calculate this separately using only assets attributable to preferred shareholders.