What Is Book Value?
Definition and plain-English explanation of "Book Value"

Book value is a company's total assets minus its total liabilities — essentially what would be left over for shareholders if the company sold everything and paid all its debts. The Price-to-Book (P/B) ratio compares the stock price to book value per share. Value investors often look for stocks trading below their book value.
Related Terms
The Price-to-Earnings (P/E) ratio measures how much investors are paying for each dollar of a compan...
The Price-to-Sales (P/S) ratio compares a company's stock price to its annual revenue per share. It ...
Earnings Per Share (EPS) is a company's net profit divided by its total number of outstanding shares...
Free cash flow (FCF) is the cash a company generates from its operations after spending on capital e...
Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.