Book value is an accounting measure of the net value of a company. It’s used to calculate the valuation of a company based on its assets and liabilities. If owners or executives sought to make a quick ...

When investors seek to value a company by comparing its stock price to its shareholders’ equity, they turn to the price-to-book ratio. Price-to-book ratio is a metric that values a company based on ...

Calculate P/B ratio by dividing stock price by book value per share. A lower P/B may signal an undervalued stock, but verify with other metrics. Use P/B for tangible asset companies; it’s less valid ...

Market value of equity is calculated by multiplying stock price by outstanding shares. Book value, derived from balance sheet equity, offers a less volatile valuation. Market values may include ...

The market price of a stock doesn't necessarily reflect its intrinsic value. Several economic theories use different approaches toward valuing companies, but one of the simplest involves calculations ...

Discover what salvage value means, how it's calculated, and see examples of its role in depreciation schedules to better manage your financial assets.

The liquidation value of a company represents the total value of its assets if the company were to go out of business and ...