The book value of a company is the difference between that company's total assets and its total liabilities, as shown on the company's balance sheet. Book value represents the carrying value of assets ...
With Berkshire Hathaway's book value per share over- or under-estimating the true value of its businesses, Warren Buffett prefers alternatives to this accounting metric.
If a company creates regular financial reports, it's easy to figure out its book value. Subtract liabilities from assets, and divide the result by the number of outstanding shares. The result is book ...
The price/book (P/B) ratio measures a company’s stock price compared with its book value. The ratio is calculated by taking the market price per share of an investment and dividing it by the book ...