He currently researches services and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. Alternatively, another method to increase the BVPS is via share repurchases (i.e. buybacks) from existing shareholders. Therefore, the amount of cash remaining once all outstanding liabilities are paid off is captured by the book value of equity. The term “book…

The difference between a company’s total assets and total liabilities is its net asset value, or the value remaining for equity shareholders. Investors can calculate it easily if they have the balance sheet of a company of interest. Investors can compare BVPS to a stock’s market price to get an idea of whether that stock is overvalued or undervalued. How…

The P/B ratio reflects the value that market participants attach to a company’s equity relative to the book value of its equity. By purchasing an undervalued stock, they hope to be rewarded when the market realizes the stock is undervalued and returns its price to where it should be—according to the investor’s analysis. While BVPS considers the residual equity per-share…

In this guide, we’ll provide a detailed overview of the landscaping industry and offer the best tips to help you grow your business. There are accountants and then there are accountants that understand business. If you are able to find an accountant that understands business (and they are a rare breed and hard to find), pay whatever they charge with…

Uncle Sam only allows the $100 interest to show up as an expense in your P/L statement. However, the full $500 flowed out of your company and needs to be considered when setting proper hourly rates. If you found this blog post helpful, be sure to share it with fellow trade business owners and follow us for more content like…

Rent roll reports are used by landlords, property managers, and investors to keep track of their rental income and ensure that rent is being collected on time. They can also be used to evaluate the financial performance of a rental property and plan for future investments. Determining the specific needs of your rental business is the first step to selecting…