Book Value.

Book value is a company's total assets minus total liabilities as reported on the balance sheet — the accounting net worth. On a per-share basis it equals shareholders' equity divided by shares outstanding. Value investors compare book value to market price using the price-to-book ratio; a ratio below 1.0 suggests the market values the company at less than its recorded net assets. Book value can be misleading for asset-light businesses whose most valuable assets (brands, software, talent) never appear on the balance sheet.