How Do You Calculate The Book Value Of A Company?
A company’s book value represents the excess of the company’s assets over its liabilities. In simple terms, a company’s book value tells you how much money would be left for shareholders if the company were to immediately liquidate, sell all of its assets and pay off all of its liabilities. Book value is a metric that is widely used by value investors to determine if a company is an attractive investment opportunity. If the market value of a company’s shares is below the company’s book value, the company is trading at a significant discount. Calculating a company’s book value is relatively easy if you have the company’s most recent financial statements. Download the company’s most recent annual report from the Securities and Exchange Commission website (see Resources) or the company’s website if they make it available. At the SEC site, select the “Search for Company Filings” link, enter the company’s ticker symbol and search for the most recent Form 10-K, which is the annual report. Go
