Final answer:
The term for the difference between what a company owns minus what it owes, divided by the number of shares outstanding, is known as the book value per share.
Step-by-step explanation:
The difference between what a company owns and what it owes, as listed on the balance sheet, divided by the number of shares outstanding is referred to as the book value per share. This value represents the net asset value of a company according to its financial statements. To compute the book value, one must subtract the total liabilities from the total assets to get the equity. Then, this equity is divided by the total number of shares outstanding, giving the book value per share.
For example, if a company's total present discounted value (PDV) of future profits is $51.3 million and there are 200 shares outstanding, the calculation would be $51.3 million divided by 200, which equals 0.2565 million or $256,500 per share.