Average Shareholder Equity

Average shareholder equity is the simple average of the starting shareholder equity value and the ending shareholder equity value of the trading day.

Example

Shareholder’s Equity (beginning figure) 140,000
Shareholder’s Equity (ending figure) 160,000
Average Shareholder’s Equity (140,000+160,000)/2 = 150,000

The above table shows that the shareholder equity at the beggining is 140,000 and the ending figure is 160,000. Therefore, the average shreholder equity is 150,000.