Book Value

Key Highlights

• The book value is what would be left over if the company were to sell off all its assets and pay off all its debts.

• Book value per share = Equity available to common shareholders/Number of shares outstanding

What is Book Value?

The book value is what would be left over if the company were to sell off all its assets and pay off all its debts. The book value is important because it provides a snapshot of a company's financial health. If a company's book value is positive, then it has more assets than liabilities and is in good financial shape.

What is Book Value Per Share?

The book value per share is the amount of equity that shareholders would theoretically receive if a company were to liquidate its assets and pay off its debts. The book value per share is calculated by dividing the book value of equity by the number of outstanding shares.

How to Calculate Book Value Per Share?

Book value per share = Equity available to common shareholders/Number of shares outstanding