(Image source: flickr.com)
I think that book value is important as it acts as a form of safety for the investor in case the company fails. For book value to act as a form of safety, we also have to look at the quality of the assets of the given company. Cash is king, while other assets such as inventory and PP&E may have to be sold at a price much lower than their book value if the company is liquidated. To find out more about the assets and liabilities that the company ......Is book value an important consideration for you before you invest in a company or do you focus more on the earnings and the potential of the company? While I think that earnings and the potential for the growth of the company are important (maybe most important), but we should also take book value into consideration
