Book value

A company’s book value is calculated by subtracting liabilities from tangible assets; in other words the company’s shareholders’ equity i.e. what company owners would be left with if assets were disposed of and liabilities paid off. The book value per share is calculated by dividing the book value by the number of shares. This is not the same as its market value, which is the market value of a company’s shares multiplied by the number of shares.