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, then dividing by the number of shares outstanding—basically, what each share's slice of the company is worth on paper. 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. For example, if TechCorp has a book value of $15 per share but trades at $50, investors are betting the company will grow significantly—or they're overpaying. It's not perfect, but it's a useful reality check.