Value Investing


For any investor who wants to evaluate a business’s true worth or value, he or she must know certain investment terms as well as how to use those terms to evaluate the approximate value of a business.

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Book Value Per Share:

The book value represents a company's assets minus its liabilities (debt). Sometimes it is referred to as “stockholders' equity.” The book value per share is calculated by the dividing company’s book value with the total number of outstanding shares. So, if a company has assets worth of $150,000 and a liability worth $100,000, the book value for the company should be $50,000 ($150,000 - $100,000). If the company has 1000 total outstanding shares, the book value per share should be $50 ($50,000/1000).

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