Book value refers to the total amount a company would be worth if it liquidated its assets and paid back all its liabilities.

It can also represent the value of a particular asset on the company’s balance sheet after taking accumulated depreciation into account.

**Formula to calculate book value.**

**Example:**

Company Y has total assets of $100 million and total liabilities of $80 million, calculate total book value.

Therefore, the book value of the company is $ 20.