The book value of a company is the difference between that company's total assets and its total liabilities, as shown on the company's balance sheet. Book value represents the carrying value of assets ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Investors constantly seek to answer one fundamental question: Am I paying a fair price for this company? Answering this requires diving into a company’s financial reports and the market’s collective ...

When investors seek to buy stock in a company, they want to understand the value of what they’re purchasing. The price per share is only one representation of current value, and it’s ever-changing.

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 ...

When you buy stock in a company, you’re buying an equity stake. The value of that equity stake will change over time: growing and shrinking in tandem with company performance. Much of this is ...

In value analysis, though price to earnings (P/E) and price to sales (P/S) are most preferred by investors, the underrated price-to-book ratio (P/B ratio) is also an easy-to-use valuation tool for ...