Key Takeaways Warren Buffett has pointed out that book value can significantly misstate the intrinsic value of a business.He ...

The book value of a company is the difference between that company's total assets and its total liabilities, as shown on the company's balance sheet. Book value represents the carrying value of assets ...

Learn how to calculate the market value of equity—find the total dollar value by multiplying the current share price by outstanding shares and understand its importance.

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 ...

For private companies that haven’t issued equity, estimating a valuation is rarely straightforward. When Inc. spoke with experts ranging from business valuation professionals to founders who’ve ...

Investors often lean into valuation ratios to determine what a company’s stock is worth. Why? Such ratios are easy to calculate and easy to find. Price/earnings ratio: A stock’s price divided by the ...