Page 239 - Flip Banks TG

Book Value per Share:

When you purchase shares of a bank, you’re staking a claim

to a portion of its shareholders’ equity, or book value. The

size of that claim is a function of (1) the number of shares

you buy, and (2) the amount of book value each share

entitles you to. As the next slide explains, this metric plays a

leading role in the valuation of bank stocks.