Equity Growth Rate Calculator
Measure how quickly a company is growing its Equity or Book Value Per Share.
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Equity (BVPS) Growth Rate
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Formula
What is Equity Growth Rate?
Equity Growth Rate, also known as Book Value Per Share (BVPS) growth, measures how quickly a company is accumulating shareholder value. It's one of the Big 5 numbers that indicate whether a business has a durable competitive advantage.
Rule #1 Guideline
Look for companies with equity growth of 10% or higher consistently over the past 10 years. Growing equity means the company is building real value for shareholders.
Understanding Book Value Per Share
Book Value Per Share (BVPS) represents the net asset value of a company on a per-share basis. It's calculated by taking total equity and dividing by the number of outstanding shares.
Why Equity Growth Matters
- • Wealth Creation: Growing equity means the company is building real value, not just revenue.
- • Retained Earnings: Shows the company is profitably reinvesting in itself.
- • Intrinsic Value: Book value growth contributes to increasing the true value of the business.
Where to Find BVPS Data
Book Value Per Share can be found on financial websites like Morningstar, Yahoo Finance, or calculated from the balance sheet by dividing Total Shareholders' Equity by Shares Outstanding.
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