Book value indicates the difference between the total assets and the total liabilities and when the formula for book value per share is to divide this book value by the number of common shares. By using the Book Value per Share Formula Book Value per Share = (Shareholders’ Equity – Preferred Equity) / Total Outstanding Common Shares Book Value per Share = $(25,000,000- $5,000,000) / $10,000,000 Book Value per Share = $2 This shows Anand Group of a company have the book value per share of $2. If book value per share is calculated with just common stock in the denominator, then it results in a measure of the amount that a common shareholder would receive upon liquidation of the company. The formula for book value per share is to subtract preferred stock from stockholders' equity, and divide by the average number of shares outstanding.