What is a stock's book value, and how is it calculated?
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Khalid
Professional Stocks and Forex trader with 4 years of experience.
A stock's book value is the theoretical value of a company's assets if all liabilities were paid off. It's calculated by subtracting a company's total liabilities from its total assets on its balance sheet. The formula for book value is: Book Value = Total Assets - Total Liabilities.
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