Book value

How are book value and market value different?

Although investors have many metrics to determine the valuation of a company’s stock, two of the most commonly used are book value and market value. Both ratings can be useful in calculating whether a stock is fairly priced, overvalued, or undervalued. In this article, we will dig deeper into the differences between the two and […]

Book value

Best Practices for Book Value Analysis

(Many investors look for book value as a way to value an investment. Photo by Joe Crawford of Moorpark, CA, USA – Flickr, CC BY 2.0, source link) By John Leonard, CFA Building on the author’s recent experience with free cash flow analysis, this edition focuses on a company’s net worth at any given time […]