Book Value

Book value is what a company would theoretically be worth if it sold all its assets and paid off all its debts today. It's calculated by subtracting total liabilities (what the company owes) from total assets (what it owns), then dividing by the number of shares outstanding. You'll see this metric when comparing stock prices to company fundamentals—some investors use it to spot undervalued stocks. For example, if TechCorp has a book value of $50 per share but trades at $30, it might look cheap on paper. That said, book value works better for asset-heavy businesses like banks or manufacturers than for tech companies, where most value comes from ideas rather than physical stuff.