Book value equals a company's total assets minus liabilities, mirroring shareholder equity. Investors use book value per share (BVPS) to assess capital risk and potential liquidation value.

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Market value of equity is calculated by multiplying stock price by outstanding shares. Book value, derived from balance sheet equity, offers a less volatile valuation. Market values may include ...

The price-to-book (P/B) ratio is widely favored by value investors for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book ...

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