Book Value is a financial metric representing the net asset value of a company, calculated by subtracting its total liabilities from its total assets. The importance of Book Value lies in its role as a fundamental indicator of a company’s tangible worth, providing insights into its financial health and underlying asset base. Book Value aims to offer stakeholders, including investors and management, a snapshot of the company’s intrinsic value based on its historical costs. While widely used in various industries, Book Value’s significance is particularly pronounced in the early stages of startups, where traditional financial metrics may be limited. In sectors such as manufacturing and retail, where tangible assets like inventory and equipment play a significant role, Book Value offers a straightforward measure of the company’s net worth. Although less relevant in technology or service-oriented startups where intangible assets often dominate, Book Value can still provide a foundation for understanding the tangible assets and liabilities on a startup’s balance sheet. Estimating Book Value in early startup stages is essential for investors and founders alike, offering a starting point for financial analysis, aiding in due diligence, and informing strategic decisions related to funding, growth, and overall business planning. It contributes to a clearer understanding of the company’s financial position, enabling stakeholders to assess the startup’s underlying value and potential for long-term success in the competitive landscape of emerging ventures.