Book Value

Book value is an accounting amount equal to assets minus liabilities. Book value per common share divides the amount attributable to common shareholders by common shares outstanding.

A simple example

If common shareholders’ equity is $500 million and 25 million common shares are outstanding, book value per share is $20.

Why this matters to income investors

It is a balance-sheet measure, not a guarantee of sale value, market value, or recoverable cash.

How to use book value in your research

Read the company’s exact calculation and examine asset quality, valuation methods, and changes in shares outstanding before comparing periods.

This material is general education and information, not individualized investment, tax, or legal advice.