A company's Book Value is used in fundamental analysis of a stock. It's a standardized number that represents the total amount of assets the shareholders would get if the company were immediately liquidated. When compared to other stocks in the market, it can be used to see if a stock is over or under priced.

The formula is:

Book Value per share = (total common stockholders' equity - preferred stock) / common shares

Jerry Robinson recommends a Book Value of less than 3.0.

Citations

• Fundamental analysis
• The Complete Position Trading Course
• [1]: - Fundamentals 101
• https://www.investopedia.com/terms/b/bookvalue.asp

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