Investing Dictionary
Company Health

What is Book Value?

What a company is worth on paper if you sold everything and paid all debts

Full Explanation

Book value = total assets − total liabilities. It's the accounting value of a company, not what the market thinks it's worth. Market value often far exceeds book value for strong brands and tech companies.

Pro Tip

If a stock trades below book value, the market may think the assets are worth less than stated — or it's a hidden gem.

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