Book Value - What does book value mean?

Q: What does book value mean?

The book value literally means the value of a business according to its books (accounts) that is reflected through its financial statements. Theoretically, book value represents the total amount a company is worth if all its assets are sold and all the liabilities are paid back.

Answer

The book value is the worth of a company as shown in its financial statements, which are based on its books (accounts). Book value is the theoretical sum that would remain after paying off all of a company's debts and selling all of its assets.

Book Value - What does book value mean?

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