Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Vikki Velasquez is a researcher and writer who has managed, coordinated, 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 ...

Under any standard of value, the true economic value of a business enterprise will equal the company’s accounting book value only by coincidence . . .” says the late business valuation expert and ...

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 ...

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Hint: It's an accounting thing. Book value is a measure of the net worth of a company, so it may come as a surprise that Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) trades for a premium of roughly ...