What Is Book Value? Book value is an accounting measure of the net value of a company. It’s used to calculate the valuation of a company based on its assets and liabilities.

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return.

Most analysts use Excel to calculate NPV. You can input the present value formula, apply it to each year's cash flows, and then add together each year's discounted cash flows, minus expenditures ...

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when ...

Net worth is the value of your assets, which is basically everything you own, such as your retirement savings and real estate, minus your liabilities — the total of everything you owe.

To show you how to calculate the net asset value of a hedge fund, we'll look at the financial statements of Pershing Square Holdings, a publicly traded "hedge fund" that's managed by Bill Ackman.