Equity per share is a dollar figure that represents the net value of a single share of a company's stock. Estimating equity per share is a way to determine whether a shareholder's investment in a company is increasing his wealth. If you're a novice investor, understanding how to estimate equity price per share will help you determine whether you have invested well, or whether your money would be better off in another company. Fortunately, estimating equity per share is not a difficult process.

1. Find the common equity amount for the company. This figure is located in the equity of statement, which is included in annual reports to investors and documents filed by publicly traded companies with the Securities Exchange Commission. To use an example, assume that the company in question has a common equity of $3 million.

2. Find the number of outstanding shares for the company on the statement. For instance, assume the company has 600,000 outstanding shares.

3. Divide the first figure --- the common equity --- by the second, which is the number of shares outstanding. The result is the equity per share. In the above-mentioned example, you would end up with $5. This means that each share of the company's stock has a net value of $5.

4. Perform this exercise again each time a new equity of statement is released and compare the results to previous ones. This will tell you whether equity per share is increasing, decreasing or remaining relatively flat.

#### References

#### Photo Credits

- Comstock/Comstock/Getty Images