Wrong! It indicates what shareholders would get if the company were sold.

Right! Book value indicates what shareholders get if the company were sold and all its loans were paid off.

Significance: In technical terms, BV is the accounting value of a firm. So a BV of Rs 39 would indicate what each share owner would get at this point in time if the company liquidated.

Book value = (Total assets – Total liabilities)/ Total number of shares.