Source: https://mochatrade.com/learn/glossary/book-value

# Book value
URL: https://mochatrade.com/learn/glossary/book-value
Last modified: 2026-10-17

Book value is total assets minus total liabilities on the balance sheet, what shareholders own on paper. For a bank it means something, and a bank below book is the market doubting its loans; for Nvidia it means little. Banks sit on the [near-dated side of the rates line](https://mochatrade.com/learn/us-market-structure/how-us-stock-prices-form), and [the Buffett piece](https://mochatrade.com/blog/the-warren-buffett-way-buy-a-great) is the long version of why book value stopped being enough.

## Related terms

- Beta: https://mochatrade.com/learn/glossary/beta
- Guidance (earnings guidance): https://mochatrade.com/learn/glossary/guidance
- Earnings call: https://mochatrade.com/learn/glossary/earnings-call
- Earnings season / earnings report: https://mochatrade.com/learn/glossary/earnings-season-earnings-report
- Growth vs value stocks: https://mochatrade.com/learn/glossary/growth-vs-value-stocks
- QQQ ETF: https://mochatrade.com/learn/glossary/qqq-etf