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Trading glossary · fundamentals

book value

What a company is worth on paper: add up everything it owns and take away everything it owes.

The fuller meaning

Shareholders' equity, total assets minus total liabilities, also called net assets. Price-to-book compares the share price with book value per share and is used mostly for asset-heavy businesses such as banks; a low P/B is not a bargain if the assets are poor.

book value.

Related words

adoption · analyst estimate · balance sheet · Bank of Japan · beat · bond · business cycle · cash flow · central bank · CPI