I am trying to calculate Book Value Per Share for Coca Cola (KO). The formula I am using according to values from KO 10Q:

BVPS = The Coca Cola Company Shareowners Equity / Average Shares Outstanding - Basic

If you look on https://www.sec.gov/Archives/edgar/data/21344/000002134418000042/a2018092810-q.htm you can shareowners equity on page 4 and the outstanding shares on page 2.

So, lets plug in the numbers from the 10Q:

BVPS = 1,760,000,000 / 4,255,000,000 = $.413

Obviously my BVPS is wrong because I went to Schwabs website where they calculate the BVPS. Their number is $3.98.

I want to find out why my calculation is wrong so that I can calculate BVPS correctly going forward.


Your number for "shareholder's equity" is just looking at common stock par value, which is usually much lower than the cash it actually received for that stock. You need to use total shareholders equity, which includes (among other things) not only the par value, but the excess paid for the stock ("capital surplus") and the amount of profit that has been retained by the company ("retained earnings"). If you take their total shareholder's equity of 18,264, divided by the shares outstanding of 4,295 (which includes the diluting effect of preferred shares), you get a BVPS of 4.25, closer to the 3.98 you found (which would be correct for the year-end 2018 balance sheet, not the Q3 balance sheet you link).

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