Book value is an accounting measure of the net value of a company. It’s used to calculate the valuation of a company based on its assets and liabilities. If owners or executives sought to make a quick ...

Book Value Per Share (BVPS) is a crucial financial metric that indicates the per-share value of a company’s equity available to common shareholders. It helps investors determine if a stock is ...

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 ...

The book value of a company is the difference between that company's total assets and its total liabilities, as shown on the company's balance sheet. Book value represents the carrying value of assets ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Calculate P/B ratio by dividing stock price by book value per share. A lower P/B may signal an undervalued stock, but verify with other metrics. Use P/B for tangible asset companies; it’s less valid ...

When investors seek to value a company by comparing its stock price to its shareholders’ equity, they turn to the price-to-book ratio. Price-to-book ratio is a metric that values a company based on ...

Valuing a business can be a tricky task. For quite legitimate reasons, your company may list items like goodwill as assets on the balance sheet. Then, there's the fact that a firm's stock may be ...

Figuring out the value per share of common equity for publicly traded companies is trivial, since all you have to do is look at the market price of the company's stock. For private companies, however, ...