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Net asset valuation = total assets – total liabilities/ number of shares OR total equity/number of shares.
Do we include non-controlling interest as part of equity ?
No. NCI only appears when producing consolidated accounts. If you are valuing a company then you use the assets and liabilities of that company.
okay, last question related to book value per share,
Book value per share = net current assets (or equity) / number of shares
My question – do we exclude the intangible assets when calculating the book value per share ?
If you are told the book value in the question, then yes.
However, firstly your ‘formula’ is not current – the book value per share is the net assets (not net current assets) / number of shares. (net assets are total assets including non-current assets less total liabilities including non-current liabilities).
Secondly, because any question on this will inevitably also require a discussion, then although you would make the point that the book values of non-current assets are generally not very meaningful, the book value of any intangible assets is likely to be even less meaningful.
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