RE: Book value4 Apr 2017 21:24
Hi chanjael
Book valye per share = shareholders equity divided by number of shares in circulation
the shareholders equity is simply the assets minus the liabilities and these can be found in the balance sheet.
So in this case, the last set of results were the interims in November - from the balance sheet: the shareholders equity is (64-32-12=20). or to be precise: £20,588,000 the number of shares in circulation is 55,390,000.
Therefore, 20,588,000 divided by 55,390,000 = 37.1 pence (apologies i wrote 36p but I calculated on iphone!).
as i wrote last night too, there are several different ways to calculate company value.
another popular method is enterprise value: this is very shortly, market value + debt - cash
which at the time negotiations starting was about £40m - which takes the share price to about 65-70p.
hope that helps and apologies to everyone for clogging the board with financials!
I have wrote more on my financial analysis GC thread if anyone is interested!
regards