Book value is the net value of a company’s assets found on its balance sheet, and is calculated by subtracting any liabilities from the assets. Although book value can give a good snapshot of a company’s current value, it is not an exhaustive measure of a company’s overall value. Investors also look at other financial metrics to assess a company’s potential.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
Her insights simplify complex financial topics into actionable strategies for beginners and seasoned traders alike.