Book value is a measure of the current worth of a company that doesn’t factor in future growth. It is a figure of what the company is worth if they sold all of its assets and paid its debts.

What Is Book Value? 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.

Book Value = Total Assets — Liabilities For example, if the ABC Company (ABC) has total assets of $500 million and total liabilities of $85 million, the company’s book value would be $415 million.

Net asset value, or NAV for short, is calculated by subtracting the expenses of a fund from the total value of its assets. Learn about the NAV for mutual funds and ETFs.

Despite the widespread use of book value, the metric comes with disadvantages. One of its drawbacks is its inability to quantify intangible assets, such as a company's copyrights, trademarks or ...

By comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. However, like P/E or P/S ratio, it is always better to compare P/B ratios ...

For example, if the ABC Company (ABC) has total assets of $500 million and total liabilities of $85 million, the company's book value would be $415 million. This means that if ABC liquidated its ...