Book Value Definition

Book value is the value of a company's assets minus its liabilities, as recorded on its balance sheet.

What is Book Value?

Book value is often compared to a company's market value to help assess whether a stock may be under- or overvalued.

It is also expressed per share to compare against the current share price.

A company with $10 million in assets and $4 million in liabilities has a book value of $6 million.

A balance sheet is a financial statement showing a company's assets, liabilities, and equity at a specific point in time.

A bar chart is a price chart that shows the open, high, low, and close for a security over a set period using vertical bars.

The base currency is the first currency listed in a currency pair, against which the second currency is quoted.