Book Value
Book Value Per Share
FundamentalsThe net asset value of a company divided by outstanding shares. Represents theoretical value if company was liquidated.
Formula
Book Value = (Total Assets - Total Liabilities) / Outstanding Shares
Why it matters
Comparing stock price to book value (P/B ratio) helps identify undervalued stocks. Banks are often valued on book value.
Indian example
Related terms
Learn the concept
Reading an Income Statement →From the research
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