Tutorial time! As stated yesterday
, Book Value Per Share is the total value of a company’s assets minus the company’s liabilities, divided by the number of shares outstanding. Let's take a look at where to find and how to derive this for Redfin ($RDFN
), a company I was discussing two days ago
First off, you can find any company's financial documents at sec.gov
The most recent 10Q will work for us:
The balance sheet already gives us the stockholder's equity, so we don't need to do the calculation of assets - liabilities. That number is $355,260. We have to multiply this number by 1000 because the balance sheet states it in thousands.
It also shows us the total shares outstanding is 99,394,432.
355,260 x 1000 / 99,394,432 = $3.57
So Redfin's book value per share is $3.57.
Hopefully this was a helpful way to get a little more acquainted with sec.gov and looking at financial statements.