Book Value refers to the value of an asset as recorded in a company's accounting records. It is calculated by subtracting the accumulated depreciation from the original cost or purchase price of the asset. Book value can be used to determine the net worth of a company, which represents the amount of assets available to cover liabilities and shareholders' equity. In general, a high book value indicates that a company has valuable assets to support its debts and investments, while a low or negative book value may indicate financial difficulties.