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Formula sheet/NISM Series XV: Research Analyst/Terminology in Equity and Debt Markets
[ TERMINOLOGY IN EQUITY AND DEBT MARKETS ]

Book Value Per Share (BVPS) & Net Worth

BVPS=Net WorthNumber of Outstanding SharesBVPS = \dfrac{\text{Net Worth}}{\text{Number of Outstanding Shares}}
Variables

Net Worth: Equity Share Capital + Reserves & Surplus - Revaluation Reserves - Accumulated Losses. Outstanding Shares: Fully paid up equity shares issued to investors.

Exam note

Represents the theoretical accounting liquidation value per share based on historical cost less depreciation.

Worked examples
Book Value Per Share (BVPS) Calculation

Apex Auto Ltd has an issued equity capital of Rs 50 Crore (Face Value Rs 10 per share), General Reserves of Rs 320 Crore, Retained Earnings of Rs 180 Crore, and Revaluation Reserves of Rs 50 Crore. If the company has accumulated deferred losses of Rs 20 Crore, compute the BVPS.

EPS, DPS, and Dividend Payout Ratio

Zenith Pharma reports Net Profit after Tax of Rs 180 Crore for FY2026. The company has 12 Crore equity shares outstanding with a Face Value of Rs 2 each. The Board declares a dividend of 250%. Calculate Basic EPS, DPS, and the Dividend Payout Ratio.

Commodity Futures Pricing & Cost of Carry

Spot Gold trades on MCX at Rs 72,000 per 10 grams. The risk-free financing rate is 7.5% p.a., storage and insurance costs are 0.8% p.a., and convenience yield is zero. Calculate the fair value of a 2-month futures contract.