Book Value per Common Share

Does book value per common share include intangible assets?

As far as I know, its formula is common stockholder's equity divided by shares outstanding? If shareholder's equity includes intangible assets, then book value per common share should also, right?

Shareholders equity does not include intangible assets per se. This is mainly bookkeeping not economics but generally in most double-entry bookkeeping systems all accounts will have two sides one is asset side and second is liability and equity. An aggregate of all these entries will end up in the balance sheet which will again have asset side and liabilities and stockholders equity side. The asset side of balance sheet tells you what firm owns and and liabilities and stockholders equity side where the sources to obtain those assets came from. An example of balance sheet would be:

Assets                              Liabilities & Stockholders equity
Cash              $$100 Stockholders Equity$$50
Intangible assets $$100 Bank Loan$$150


The formula for book value per common share is according to investopedia given by:

$$BV = \frac{\text{total equity} - \text{preferred equity}}{\text{Total Shares Outstanding}}$$

Note that neither the total equity or the book value in itself gives you any information what the amount of intangible assets is or they are included in calculation. The total equity can be calculated as Assets minus Liabilities but again you cant generally tell from total assets or liabilities what the intangible assets are. In this case the total equity is $$\\\50$$ but amount of intangible assets is $$\\\100$$. The book value also does not give you any information or contain the intangible assets either. To see what they are you would have to go back to balance sheet or some ratio that includes them.

Yes. Intangible assets are part of equity. Book value is sometimes used as a synonym for equity.

Intangible assets are part of equity until it is reduced by amortization or impairment.

One interesting example is software. Development costs might be capitalized as equity or it might be an expense so it never becomes capital. The decision depends upon technological feasibility.