Book Value

Book Value - The book value is the common stock equity of a company according to the value that appears on the balance sheet, which is the equivalent of the total assets less its liabilities, intangible assets like goodwill, and preferred stock. This formula provides you with the value the company has in assets if the company were to go out of business at any given time, or immediately. Being as companies are expected to grown and generate additional profits in the future, the market capitalization is greater than the book value for the majority of companies. Book value is considered an accurate measure of slow growing companies; therefore, it interests value investors more than growth investors.