Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Q: What does "book value" mean, and why is it useful to me as an investor? Book value is one of the simplest investing metrics to calculate. Look at a company's balance sheet and subtract the ...

When you buy stock in a company, you’re buying an equity stake. The value of that equity stake will change over time: growing and shrinking in tandem with company performance. Much of this is ...

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.

Coming up with a reasonable valuation for a business can often be a challenge. The best indicator of company value is what market participants are willing to pay for it, and so companies whose shares ...