By Leanna Kelly When valuing a company, there are many metrics to consider. And while most of them show a clear picture of the organization’s worth from a sales and revenue standpoint, it’s also important to consider how much intrinsic value it has. That is, it’s book value.
What is book value? If you take all the liabilities a company has and subtract them from the assets and common stock equity of the company, you’re left with book value. Most of the time, this is an evaluative measure, rather an assessment of the company’s market value. Nevertheless, it’s an important baseline metric to understand. …read more
