Glossary Background

Book Value

For a company, the book value refers to its Net Asset Value (NAV), which is the total value of the company's assets minus its liabilities, intangible assets, and goodwill. This value is often used by investors to assess a company's worth based on its tangible assets. In financial analysis, it serves as an important metric for understanding a company’s financial health, with a higher book value potentially indicating a stronger asset base relative to liabilities.