asset value


Also found in: Dictionary, Acronyms.
Related to asset value: Net Asset Value Per Share

Asset value

The net market value of a corporation's assets on a per-share basis, not the market value of the shares. A company is undervalued in the market when asset value exceeds market value.

Asset Value

In stocks, the market value of a company's assets per share. Asset value does not take into account the share price; one calculates the asset value by adding together the total value of the company's tangible and intangible assets and dividing by the shares outstanding. Fundamental analysts may use a company's asset value to determine whether it is undervalued or overvalued. A company with a share price below its asset value is considered undervalued and fundamental analysts may recommend buying shares in that company. On the other hand, a company with a share price above the asset value is overvalued and fundamental analysts may recommend selling it. See also: Net asset value.

asset value

Used to refer to the stock of a company, especially a stock whose price does not necessarily reflect the full value of the firm's assets. This situation may occur when the assets are not producing much current income. See also asset play.
References in periodicals archive ?
The commonsense solution is to pay or accept net asset value plus an even split of the profits for five years.
The portfolio companies that made the greatest contribution to the favorable growth in Industrivarden's net asset value were Sandvik, which gained 34%, SSAB, which rose 69%, and SCA, which gained 23% for the year.
The Fund normally calculates its net asset value per share on each day on which either the Taiwan Stock Exchange or the New York Stock Exchange is open for trading.
The Boberg and Boberg (1990) study suggests that in the English speaking, North American cultures, the impact of stuttering is significant enough to encourage the nonstuttering spouse to assist and compensate his/her partner who stutters in some verbal situations, even when the person who stutters and his/her partner elect to use asset values and thus operate within a coping framework.
Open communication between both partners concerning the feelings, cognitions and behaviors involved in a relationship in which daily living activities are affected by stuttering reduces feelings of shame and guilt, and promotes the use of asset values.
Rehabilitation counselors can promote asset values and consumer control over his/her life.
Rehabilitation counselors can introduce the consumer to asset values in order to improve general self-confidence and self-esteem.