Book Value
Total assets minus total liabilities on the balance sheet — what shareholders would theoretically receive if the company were liquidated today.
Book Value Per Share = (Total Assets − Total Liabilities) ÷ Shares Outstanding
Book value (or shareholders' equity) is the accounting net worth of a company: total assets minus total liabilities. On a per-share basis, it is book value divided by shares outstanding.
The price-to-book (P/B) ratio compares market price to book value. A P/B of 1× means you pay exactly what the balance sheet says it's worth; above 1× reflects goodwill, brand value, and growth expectations; below 1× can signal distress or that the market doubts the asset values.
Book value is most meaningful for financial companies (banks, insurance) where assets are mostly financial instruments. For tech and brand-heavy companies, intangible assets mean book value drastically understates economic worth.