Book Value
Definition
The net asset value of a company, calculated as total assets minus total liabilities. Often used to assess if a stock is undervalued.
Formula / Rules
$ \text{Book Value Per Share} = \frac{\text{Total Assets} - \text{Total Liabilities}}{\text{Shares Outstanding}} $
Example
$500 million net assets and million shares equals $10 book value per share. Free Cash Flow (FCF) Category: Equity / Fundamental Metric Definition: Cash generated by a company after accounting for capital expenditures. Indicates cash available for
Frequently Asked Question
What is Book Value in trading?
The net asset value of a company, calculated as total assets minus total liabilities. Often used to assess if a stock is undervalued.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.