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Valuation

What Is Book Value?

Definition and plain-English explanation of "Book Value"

Book Value — Valuation illustration

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.

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