Book Value

The book value of a company is the total amount a company would be worth if it liquidated its assets and paid back all its liabilities.

Book value is calculated by taking a company’s physical assets (including land, buildings, computers, etc.) and subtracting liabilities including preferred stock, debt, and accounts payable. The value left after this calculation represents what the company is intrinsically worth.

<< Back to Glossary Index

Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on unless specifically stated in the article. Owner of Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.