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 ...

Market value of equity is calculated by multiplying stock price by outstanding shares. Book value, derived from balance sheet equity, offers a less volatile valuation. Market values may include ...

Price-to-book ratio is a convenient tool for identifying low-priced stocks with high-growth prospects. Book value is what shareholders may receive if a company liquidates assets after paying off all ...