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Book Value
Valuation & Fundamentals
Total assets minus total liabilities, which equals shareholders' equity on the balance sheet.
Divided by the number of shares, it gives book value per share. Because assets are mostly recorded at historical cost, book value shows the net worth in the accounting records rather than what the company would fetch in the market.
Example
A company with $100 billion of assets and $70 billion of liabilities has a book value of $30 billion. With 1 billion shares, book value per share is $30.
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