Book value (also known as equity, shareholders' funds, or net asset value) is the value of all a company's assets, minus its liabilities. The number can be found on the balance sheet in an annual report.
It is sometimes used to estimate what a firm would be worth if all its assets were sold, and is often used to value banks and house-builders. But book value may contain intangible assets, such as goodwill', which may not be worth much at all.
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See Tim Bennett's video tutorial:Beginner's guide to investing: the price-to-book ratio.
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