Financials

Book value

The reported net asset value on the balance sheet, often represented by shareholders equity.

What it means

Book value is based on accounting records: assets minus liabilities. It can be useful context for balance-sheet-heavy businesses, but accounting treatment varies by asset type and industry.

Example

A bank often discusses book value per share because its balance sheet is central to the business model.

What not to infer

Book value is not the same as market value, liquidation value, or intrinsic value.