What It Means
Net worth is the total value of what you own minus what you owe — assets minus liabilities. The same concept applies to an individual (savings, investments, property, minus loans) and to a company (total assets minus total debt), just at very different scales.
Example
If Priya owns a house worth ₹80 lakh, ₹15 lakh in mutual funds and stocks, and ₹5 lakh in savings, but still owes ₹30 lakh on her home loan, her net worth is ₹70 lakh (₹1 crore in assets minus ₹30 lakh in liabilities). For a company, the equivalent figure is often called shareholders' equity or book value, and it's one of the inputs analysts use when judging whether a stock is cheap or expensive relative to what the company actually owns.