Someone on Yahoo thread posted BV was 7.09 a share.
I posted the following response:
Never use Yahoo or other service numbers for BV, cash per share, or number of outstanding shares(diluted), without checking yourself. I've found a lot of this info is wrong, sometimes very wrong.
Take Deswell. The BV and outstanding share data info on Yahoo is clearly dated prior to the called early exercise of the warrants in February. I believe the data is for 12.31.97. According to the last Q earnings release, the balance sheet for June 30, 1998 shows stockholder equity of 44.263M and the income statement shows 5.623M diluted weighted average number of shares outstanding.
Therefore BV= 44.263/5.623 = $7.87.
The stockholder equity was 45.211M and outstanding shares were 5.394M published in the annual report for March 31, 1998. Thus the current BV is actually down to $7.87 from $8.38 the quarter before. This was probably due to the dividend payment offset by one quarter's worth of earnings. Since the last Q was completed Sept 30, and probably added about 50 cents to equity, the current BV is likely to be about $8.37. Note that the bid/ask on Friday's close was 8 1/4 bid to 8 7/8 ask, just above the current likely BV. This all pretty much makes sense, if the stock price is being set by BV and the share buybacks (if done only below book).
If the company was able to purchase 500,000 shares at 6.37 with the BV at 8.37, then stockholders equity would shrink by 3.185M. But the number of diluted outstanding shares would shrink to 5.123M, and the BV would increase from about 8.37 to 8.57 due to the share buyback. You are correct that buying shares back at the BV of 8.37 will not change BV, and of course buying shares back above BV actually decreases BV. Buying shares back either above BV or below BV impacts BV by changing the stockholders equity and the number of shares outstanding by differing percentages. Hence the BV ratio is changed.
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