The formula is this: Book Value = Total Assets - Total Liabilities Calculated from a company's balance sheet, book value takes all the company's assets — physical things of value, from inventory ...

The following formula and calculation can be used ... which should be listed separately on the balance sheet. Subtract total liabilities from total assets to arrive at shareholder equity.

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.