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Residual Income Valuation per Share Calculator

V = BV + (Earnings − r×BV) / r — equity residual income model.

Values equity per share using the residual income model: intrinsic value equals book value plus the present value of excess earnings over the cost of equity charge.

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Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

V = BV + (E − r×BV) / r; residual income = E − r×BV

In depth

Values equity per share using the residual income model: intrinsic value equals book value plus the present value of excess earnings over the cost of equity charge.