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# Pfizer's book value per share is \$11.71 but it's trading at

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Pfizer's book value per share is \$11.71 but it's trading at almost twice that amount. Why are they different?

http://finance.yahoo.com/q/ks?s=PFE+Key+Statistics

#### Solution Preview

Problem: Pfizer's book value per share is \$11.71 but it's trading at almost twice that amount. Why are they different?

Solution:
The book value per share of Pfizer (or any company) is a mathematical calculation that is derived from the numbers on the balance sheet. The book value per share is calculated by taking the total shareholder equity, subtracting the preferred equity, and dividing the total by the total number of shares that are outstanding. The book value per share will almost always be lower than the trading price, ...

#### Solution Summary

This solution helps with a problem regarding key statistics on Pfizer. It helps explain why book values are different than trade values. The explanation is given in 280 words.

\$2.19