Book value is nothing but the Actual worth of the company . This is how its get calculated : Book value of a company = Total assets – Total liabilities. For example, if Company ABC has total assets of Rs. 10 lakh and total liabilities of Rs. 2 lakh, the book value of the company is Rs. 8 lakh .Theoretically, book value represents the total amount a company is worth if all its assets are sold and all liabilities are paid back .