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BPS is an indicator of how much net asset per share.
It is also used for calculation of PBR, and it is the entrance to see the asset value of the company.
What is BPS?
BPS is a net asset per share.
Cal the company's net assets by the number of shares issued.
BPS = Net assets ÷ Number of shares issued
BPS is 500 yen if net assets 500 billion yen and 100 million shares issued.
Why important?
BPS is an indicator of how much net asset is dealt with in one share.
If you divide the stock price with BPS, it becomes PBR.
Therefore, BPS is a material that considers whether the stock price is high or low for the asset value.
Notes
BPS is based on net assets on the book.
Not exactly the value when you actually sell a company.
In addition, you may not be able to fully reflect unob、sive value like brand, technology, and human resources.
BPS is a basic indicator to see net assets per share.
Not only BPS but also PBR, ROE and profit stability.