Definition

The net value of a company’s assets as recorded on its balance sheet, often used to assess its intrinsic value.

What to consider

  • Compare a company’s book value to its market price for valuation insights.
  • Review financial statements to understand asset composition.
  • Use it as one indicator among many when assessing an investment.

Real world scenarios

  • Before purchasing shares in a company, Liam reviewed its book value to better understand the net worth of its assets and liabilities.

Related terms

Reviewing: Investments & Retirement (17 of 100)
Topics
Mia's avatar
Hey there! I’m Mia. Have questions about Book Value?
Mia's avatar
I’ve got a few ideas you can put into action today. Ready to dive in?