Key Takeaways Warren Buffett has pointed out that book value can significantly misstate the intrinsic value of a business.He ...

Learn how to calculate the written-down value (WDV) to determine the current worth of an asset after depreciation or amortization, also known as book value.

Also referred to as a company's net worth, book value can be easily calculated from a company's balance sheet. Book value is the total value of the company's assets minus its outstanding liabilities.

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 ...

Learn how to calculate the market value of equity—find the total dollar value by multiplying the current share price by outstanding shares and understand its importance.

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 ...

The price-to-book (P/B) ratio is widely favored by value investors for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book ...