asset value per share


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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 per share

or

break-up value

the total value of a firm's tangible book ASSETS less all short- and long-term LIABILITIES as shown in the BALANCE SHEET. The net assets figure is divided by the number of ORDINARY SHARES the company has, to show approximately how much asset value supports each share. In the case of a LIQUIDATION it would be of some use to the SHAREHOLDERS in estimating how much they may reasonably expect to receive from the sale of the firm or of its assets. Book values of assets may be a reasonable estimate of their value to the firm as a going concern, but upon break-up they tend to be worth considerably less depending upon the alternative uses to which they can be put. See also ASSET-STRIPPER, SHARE CAPITAL.
References in periodicals archive ?
The estimated 16% growth in sterling terms in net asset value per share is a result of our commitment to build companies based on strong IP, proven technology and which are addressing large unmet market needs.
The Fund's net asset value per share may fluctuate between the deadline for participating in the repurchase offer (December 15, 2006) and the pricing date of the repurchase offer (December 29, 2006).
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.
Net asset value per share on June 30, 2006, was SEK 256 (199 on June 30, 2005), an increase of SEK 6 per share or 2% since the start of the year.