Key Takeaways Warren Buffett has pointed out that book value can significantly misstate the intrinsic value of a business.He prefers using intrinsic value, "the discounted value of the cash that can ...

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 ...

If a company creates regular financial reports, it's easy to figure out its book value. Subtract liabilities from assets, and divide the result by the number of outstanding shares. The result is book ...

The price/book (P/B) ratio measures a company’s stock price compared with its book value. The ratio is calculated by taking the market price per share of an investment and dividing it by the book ...