What does the common equity per share refer to?

Common equity per share specifically refers to the amount of common stockholders' equity attributable to a single share. This figure is calculated by taking the total common equity of a company and dividing it by the total number of outstanding shares of common stock. It provides insight into the value of each share from an equity standpoint, reflecting the ownership interest that each shareholder has in the company.

Understanding this concept is crucial for investors as it allows them to assess the value of their investment on a per-share basis, which can influence their decisions on buying or selling shares. It is a key metric in evaluating a company’s financial health and performance, as it gives a clear indication of how much equity is associated with each share held by shareholders.