What Is Book Value? Book value is an accounting measure of the net value of a company. It’s used to calculate the valuation of a company based on its assets and liabilities.

To show you how to calculate the net asset value of a hedge fund, we'll look at the financial statements of Pershing Square Holdings, a publicly traded "hedge fund" that's managed by Bill Ackman.

Book value and market value are key to finding stocks with high growth potential. Learn how to use book and market value to uncover profitable stocks.

Unlike market value, which reflects the value of a company as an ongoing concern, liquidation value is typically lower due to the discounted prices assets may fetch in a quick sale.

How to Calculate Net Worth The net worth formula isn't complicated. Simply add up all of your assets. Then, subtract your total debts from your total assets.