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Stock Market Trading > Learn Stock Market Trading > What is a stock's book value, and how is it calculated?
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What is a stock's book value, and how is it calculated?

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Professional Stocks and Forex trader with 4 years of experience.

A stock's book value is the theoretical value of a company's assets if all liabilities were paid off. It's calculated by subtracting a company's total liabilities from its total assets on its balance sheet. The formula for book value is: Book Value = Total Assets - Total Liabilities.
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