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44centsAKAchoccake

06/28/13 11:46 PM

#9801 RE: Joe Stocks #9800

Well you know what the market cap is. Market price per share times the number of common shares outstanding.

Book equity capitalization is the common equity capitalization that you find on the accounting statements. Its the original issuances of common stock at whatever they were issued at plus retained earnings. So book equity capital per share is book equity capital divided by the number of shares outstanding.

Some people like to look at the market-to-book ratio. So, market cap per share divided by book capital per share. For public utilities, the ratio might be 1.5 to 1. For Apple I have no idea, but I'd guess the market to book ratio is very high. It can be a useful ratio to look at, more to compare companies within an industry rather than anything else.