Whenever one wants to start their Investment destination then knowing the correct value of their stock is prima facie. So understanding what Net Worth is the first step in taking any investment decision.

Every Company has its own personal assets like office premises, factory machinery, etc., and also some investments. Apart from assets they even have certain long-term debts like loans that need to be paid back.

Therefore the difference between the Assets that the company owns and the Debt that it needs to pay is known as the Net Worth of the company.

It represents the total value of a company.