Book value and market value are key to finding stocks with high growth potential. ... Book Value Examples . Deriving the book value of a company becomes easier when you know where to look.

Book value = Total Assets - Total Liabilities. ... For example, consider a company with a $100 million book value, mostly in stable real-estate, trading at a P/B of 0.95.

Book value per share (BVPS) ... Example of BVPS . Assume that XYZ Manufacturing has a common equity balance of $10 million and 1 million shares of common stock are outstanding.

If the book value is higher than the market value, it’s an undervalued signal. The further over or under the book price is from the market value, the stronger the signal. For example, if the BVPS of ...