book value

**Book Value**

Book value refers to the net asset value of a company as recorded on its balance sheet. It is calculated by subtracting a company’s total liabilities from its total assets. This financial metric represents the accounting value of a business and is often used by investors to assess whether a stock is undervalued or overvalued compared to its market price. In investing, the book value can provide insight into a company’s intrinsic worth, helping to inform purchasing or selling decisions.