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 taking total assets minus total liabilities—basically, what's left for shareholders. You'll see this number when comparing stock prices to company fundamentals, because it helps you spot whether a stock is cheap or expensive relative to what the company actually owns. Some investors use it to find undervalued companies trading below their book value. For example, if TechCorp has $50 million in assets and $20 million in debt, its book value is $30 million—and if that divides into 10 million shares, each share has $3 in book value backing it.