Book Value of Assets: What It Is and How to Calculate It

In contrast, video game companies, fashion designers, or trading firms may have little or no book value because they are only as good as the people who work there. Book value is not very useful in the latter case, but for companies with solid assets, it's often the No.1 figure for investors. Since a company’s book value represents net worth, comparing book value to the market value of the shares can serve as an effective valuation technique when trying...