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What Is Book Value?

By Catherine Brock – Updated Feb 26, 2025 at 2:42PM

Key Points

  • Book value equals a company's total assets minus liabilities, mirroring shareholder equity.
  • Investors use book value per share (BVPS) to assess capital risk and potential liquidation value.
  • Price-to-Book (P/B) ratio compares market to book value, aiding in identifying undervalued stocks.
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