Financial Statements
Book Value
The accounting value of a company’s net assets based on the balance sheet.
Also called: net asset value of company, equity book value
What it means
Book value is generally the value of total assets minus total liabilities as recorded on the balance sheet. On a per-share basis, it is often called book value per share. It reflects accounting values, not necessarily current market value.
Why it matters
Some investors compare market value to book value when judging whether a stock looks expensive or cheap relative to accounting net worth.