Book value is a key measure that investors use to gauge a stock's valuation. The book value of a company is the total value of the company's assets, minus the company's outstanding liabilities ...

Relevance and Uses. As the accounting value of a company, book value can have 2 core uses: It shall serve as the total value of the assets of the firm or of the company that stockholders would theoretically receive if the firm or the company were to be liquidated. Relevance and Uses. As the accounting value of a company, book value can have 2 core uses: It shall serve as the total value of the assets of the firm or of the company that stockholders would theoretically receive if the firm or the company were to be liquidated. Formula for Book Value Per Share. The formula for calculating the book value per share is given as follows: N.B.: We used the “average number of shares outstanding” because the closing period amount may skew results if there was a stock issuance or major stock buyouts.