What is the full form of BV in the Share Market?

The BV full form in the share market is Book Value. A readily available equity is used to compute book value (BV), which is then divided by the total number of outstanding shares. The BV value is highly useful in calculating the book value of the company per share and also shares as a minimal measure of its equity.

How to use book value per share?

Some traders will make use of this book value per share to estimate the equity of the company on the basis of its market value. This also serves as an indication of the future growth potential of the company. The BV is theoretically the amount that the shareholders would get during the time of liquidation.

What should companies do in order to increase their BV?

In order to improve their book value, the companies can make use of a portion of their earning to buy assets and improve both their book value and their common equity. It can also make use of the earnings to decrease its liabilities or repurchase the common stock from the shareholders to buy back the shares.