Book value equals a company's total assets minus liabilities, mirroring shareholder equity. Investors use book value per share (BVPS) to assess capital risk and potential liquidation value.

As Accounting Coach reports, book value can have two definitions in accounting. The first defines the liquidation value of a firm as in bankruptcy liquidation. Book value can also refer to the ...

When you buy stock in a company, you’re buying an equity stake. The value of that equity stake will change over time: growing and shrinking in tandem with company performance. Much of this is ...

Investors constantly seek to answer one fundamental question: Am I paying a fair price for this company? Answering this requires diving into a company’s financial reports and the market’s collective ...

There are many ways to estimate the value of a company. One ratio that is popular with value investors, in particular, is the price/book ratio, which compares a company’s share price with its book ...