24. Calculate Book Value with Preferred Stock

Download Preston’s 1 page checklist for finding great stock picks:

Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:

In this lesson, students learned the importance of Common Shareholder’s equity and Preferred Shareholder’s par value. In order to properly assess the value of a common shareholder’s equity we must always remember to subtract the par value of the preferred stock. Although this might be a painful process for new investors, it’s importance is paramount. If an individual is interested in investing in such a company, you would need to assess this “correct book value” for previous periods in order to reasonably assess the common share holder’s equity growth in a business.

Articles You May Like

3 Best Defense Stocks to Buy Now
7 Battery Stocks That Could 10X by 2030
From the Fed to Europe’s currency crisis, here’s what’s behind this selloff in financial markets
Don’t Be Fooled by the ‘Bull Case’ for PayPal Stock
What Is the Formula for Calculating Earnings per Share (EPS)?