book value

Book value is the accounting measure of a company's net worth as recorded on its balance sheet. It’s calculated by subtracting total liabilities (debts) from total assets (what the company owns). Essentially, it reflects the value of the company’s assets after accounting for its debts. Book value can give investors a sense of the company's underlying worth based on its financial records, though it may differ from the company's market value, which is influenced by factors like future growth and market perception.