Book Value

Posted on February 21, 2011 by Thomas DeGrace

Book Value is the company’s assets minus the liabilities plus liquidation price of any preferred issues.

Understand How Book Value Works

Some famous smart investors such as Warren Buffett and Benjamin Graham use book value as a guide to determine if a stock is a good investment or not.  By knowing the book value of a company, you can reduce your downside risk in bear market.



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