Book value is the net value of a company’s assets recorded on its balance sheet, calculated by subtracting total liabilities from total assets.
It represents the theoretical amount that shareholders would receive if the company were liquidated and its assets sold at their recorded values. Book value per share divides the book value by the number of outstanding shares.
While book value provides insights into a company’s net worth, it may differ from market value, reflecting investors’ perceptions and expectations about the firm’s future performance.
