What is Net Worth?
Net worth is the amount by which assets exceed liabilities. Another way to say this is, it’s the value of everything you own, minus all your debts.
Net worth is a concept that can be applied to both individuals and businesses, as a measure of how much they are really worth. In the corporate world, net worth is also called book value or shareholders' equity. The word “net”, in financial language, means “after subtracting expenses and debts.”
A consistent increase in net worth means assets are growing faster than debts, and indicates good financial health. Conversely, when liabilities grow faster than assets, or when the value of assets drop, net worth decreases, indicating financial problems.
Now, let’s see:
Top 10 Highest Net Worth Stock
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Top 10 Lowest Net Worth Stock
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Price Compared to the Book Value (PBV)
PBV denotes the ratio of the Price Compared to the Book Value. This is a ratio used to compare a stock´s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter´s book value per share. A lower PBV ratio could mean that the stock is undervalued. Value investors generally consider the PBV Ratio of below 3 as good investment opportunities.
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Price Compared to the Book Value (PBV) is one of the fundamental tool only, we have to go through various fundamental tools while investing. Therefore, investment on a stock only by measuring PBV is RISKY.
Market Price dated 18 Feb. 2018.
