What is book value?
Book value represents the net value of a company’s assets after liabilities are deducted.
Why is book value important?
It provides a baseline valuation of a business and supports investment decisions.
How is book value calculated?
Book value equals total assets minus total liabilities.
How does book value differ from market value?
Book value reflects accounting records. Market value reflects investor perception and market conditions.
When is book value used?
It is often used in valuations, financial analysis, and investment decisions.