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.

For example, eBay (EBAY) had a book value of almost $24 billion in 2014 that was reduced to almost $6 billion in 2016 because of the PayPal (PYPL) divestiture.

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.

For example, if a machine costs $20,000 and is expected to lose $15,000 in value over five years, the residual value would be $5,000. This amount can be used in planning for resale, budgeting for ...

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.

Investors and money managers often assign stocks to value or growth camps. Value stocks tend to be those of mature companies ...

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 ...

There can be no assurance that our estimated book value per common share as of May 31, 2025 is indicative of what our results are likely to be for the three- or six- month periods ending June 30 ...

Value stocks are more suited to long-term as opposed to short-term investors. Value Stock Characteristics. Patience is a virtue. That’s something value stock investors must possess because value ...