What is Net Worth of Shares? What does net worth per share mean?

Profit after tax per share, net asset value per share, and return on equity are the main indicators to measure the value of a company's investments. Profit after tax per share, also known as earnings per share, can be calculated by dividing the company's after-tax profit by the total number of shares of the company.

For example, if the after-tax profit of a listed company is 200 million yuan and the total number of shares of the company is 1 billion shares, then the company's after-tax profit per share is yuan. Profit after tax per share highlights the amount of earnings allocated to each share and is the basis for price-to-earnings pricing in the market.

If a company's total after-tax profit is large, but the profit per share is small, it indicates that its operating performance is not satisfactory, and the ** per share is usually not high; Conversely, a high amount of earnings per share indicates that the company's operating performance is good, which can often support a higher stock price.

The net assets of a company represent the property owned by the company itself, and it is also the rights and interests of shareholders in the company, so it is also called shareholders' equity. In accounting, it is equivalent to the balance of total assets in the balance sheet minus all liabilities. The net assets of the company are divided by the total number of shares outstanding, which gives the net assets per share.

For example, the above-mentioned company has a net asset of 1.5 billion yuan, and its net assets per share are yuan.

The net asset value per share reflects the net asset value of the company represented by each share, which is an important foundation to support the market. The larger the net asset value per share, the greater the wealth represented by the company's per share**, and the greater the ability to generate profits and resist external factors. Return on equity is the percentage ratio of a company's after-tax profit divided by its net assets, which is used to measure the efficiency of a company's use of its own capital.

Taking the above-mentioned company as an example, its after-tax profit is 200 million yuan, its net assets are 1.5 billion yuan, and the return on equity is.

Return on equity measures the efficiency with which a company uses the capital invested by shareholders, and it compensates for the lack of after-tax earnings per share. For example, after a company gives bonus shares to its original shareholders, the earnings per share will fall, creating a false impression among investors that the company's profitability has declined. In fact, the profitability of the company has not changed, and it is more appropriate to use the return on equity to analyze the profitability of the company.

Net asset refers to the owner's equity or equity capital.

Net assets per share is the total assets of the company minus liabilities divided by the total share capital.

Net assets per share refers to the ratio of shareholders' equity to the total number of shares. It is calculated as follows: net assets per share = total shareholders' equity and total number of shares.

This indicator reflects the present value of assets owned per share**. The higher the net assets per share, the more value of assets per share owned by shareholders; The lower the net assets per share, the less the value of the assets per share owned by the shareholder. Generally, the higher the net assets per share, the better.

The net asset value per share reflects the net asset value of the company represented by each share, which is an important foundation to support the market. The larger the net asset value per share, the greater the wealth represented by the company's per share**, and the greater the ability to generate profits and resist external factors.

Significance:

Because in addition to net assets, the management level, technical equipment, market share and external image of the enterprise will have an impact on the final operating efficiency of the enterprise, and the impact of net assets on the enterprise mainly comes from the effect of the average profit rate law.

Due to the law of average profit margin, the return on equity of a company will fluctuate around an average level. For listed companies, their profitability is generally higher than that of ordinary enterprises because they have undergone more strict scrutiny, and the operating mechanism is more flexible, and the management level is higher than that of ordinary enterprises.

The value of itself. It's useless to look at the god horse rate. It's useless to see what the Shenma line can do if you wear the Shenma line, take a look at Peter Lynch's book, ** Wisdom. This line of work needs to be realized

The net assets of ** are the actual assets contained in each share of the listed company, also known as the book value.

or net worth, which refers to the value of the assets included in ** calculated by accounting methods. It is a sign of the economic strength of a listed company, as the operation of a business is based on the number of its net assets.

**Net assets per share.

It is particularly important that the higher the net assets per share, the more value of assets per share owned by shareholders; The lower the net assets per share, the less the value of the assets per share owned by the shareholder.

Extended Information] The relationship between net assets per share and stock price: stock price per share Net assets per share = price-to-book ratio.

The price-to-book ratio is the ratio of the share price per share to the net assets per share. The price-to-book ratio can be used for investment analysis, and generally speaking, the lower the price-to-book ratio, the higher the investment value.

1. Stock price refers to the transaction of **, and the value of ** is a relative concept. The true meaning is the value of the assets of the business. The value of the share price is equal to earnings per share.

Multiply by the P/E ratio.

Second, the impact of exchange rate changes on stock prices, the most direct is those engaged in import and export of the company.

It is reflected in the stock price through the impact on the company's operating and profits, and its main performance is:

If a considerable part of the company's products are sold in overseas markets, when the exchange rate increases, the competitiveness of the products in the overseas markets will be weakened, and the company's profitability will decline and ******.

If some of the company's raw materials rely on imports, and the products are mainly sold domestically, then the exchange rate increases, so that the company's imported raw material costs are reduced, and the profitability rises, so that the company's stock price tends to be the best.

If the exchange rate to a certain country will be, then monetary funds.

It will move upward, and some of the funds will go in, and it may also be due to this.

Therefore, investors can make correct investment choices based on the above-mentioned general impact of exchange rate changes on stock prices, as well as changes in other factors.

3. In terms of **, generally speaking, the factors that affect stock price changes can be divided into, individual factors and general factors.

1.Individual factors mainly include the operating conditions of listed companies, their industry status, income, asset value, income changes, dividend changes, capital increases, capital reductions, development of new products and technologies, supply and demand, changes in shareholder composition, shareholding ratios of major institutions (such as ** companies, securities companies, QF, etc.), performance in the next three years**, price-earnings ratio, mergers and acquisitions, etc.

2.General factors are divided into extra-market factors and intra-market factors. Factors outside the market mainly include: political and social situation; social events; Sudden events; Macroeconomic.

economic trends and international economic trends; Monetary and fiscal policy.

Exchange rates, prices, and expected "news" or even "news" out of nowhere, etc. The factors in the market mainly include: market supply and demand; Trends of institutional corporations and individual investors; the movement of brokerages and foreign investors; ** Exercise of executive power; stock price delay-based policy; Taxes and so on.

Net assets per share refers to the ratio of shareholders' equity to the total number of shares. The formula is as follows: net assets per share = total shareholders' equity total share capital * par value. This indicator reflects the present value of assets owned per share**.

The net assets of ** are the actual number of assets contained in each share of the listed company, also known as the book value or net value of **, which refers to the value of the assets contained in ** calculated by accounting methods. It is a sign of the economic strength of a listed company, because the operation of any enterprise is based on the number of its net assets.

If a company has too much debt and less net assets, it means that the vast majority of its operating results will be used to pay off debts; If there is too much debt and insolvency, the company will face the danger of bankruptcy.

Net assets per share refers to the ratio of shareholders' equity to the total number of shares. The formula is as follows: net assets per share = total shareholders' equity total share capital * par value. This indicator reflects the present value of assets owned per share**.

Net assets per share refers to the ratio of shareholders' equity to the total number of shares, which is calculated as follows: net assets per share, total shareholders' equity, and total number of shares in share capital. The higher the net assets per share, the more value of assets per share owned by shareholders; The lower the net assets per share, the less the value of assets per share owned by shareholders, and generally the higher the net assets per share, the better, which reflects the present value of assets owned per share**.

Presentation of net assets per share.

Net assets per share, in which "net assets" refers to the net amount of the total assets of the enterprise minus liabilities, also known as "shareholders' equity" or "owners' equity", that is, the share of investors in the total assets of the enterprise.

The net assets per share of a listed company are mainly composed of share capital, capital reserve, surplus reserve and undistributed profits, and according to the relevant provisions of the Company Law, share capital, capital reserve and surplus reserve cannot be changed arbitrarily during the normal operation period of the company.

The net assets of ** are the actual assets contained in each share of the listed company, also known as the book value or net value of **, which refers to the value of the assets contained in ** calculated by accounting methods.