book value

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Related to book value: market value, Book value per share

Book value

A company's total assets minus intangible assets and liabilities, such as debt. A company's book value might be higher or lower than its market value.

Net Asset Value

In stocks and businesses, an expression of the underlying value of the company. That is, it is a statement of the value of the company's assets minus the value of its liabilities. One way of thinking about the net asset value is that it is the underlying value of a company, not the value dictated by the supply and demand of shares or its market capitalization. It is also called the book value.

book value

1. The net dollar value at which an asset is carried on a firm's balance sheet. For example, a building that was purchased for $900,000 but that has depreciated $200,000 has a book value of $700,000. Book value, an accounting concept, often bears little relation to an asset's market value. Also called carrying value, depreciated cost.

Book value.

Book value is the net asset value (NAV) of a company's stocks and bonds.

Finding the NAV involves subtracting the company's short- and long-term liabilities from its assets to find net assets. Then you'd divide the net assets by the number of shares of common stock, preferred stock, or bonds to get the NAV per share or per bond.

Book value is sometimes cited as a way of determining whether a company's assets cover its outstanding obligations and equity issues.

Further, some investors and analysts look at the price of a stock in relation to its book value, which is provided in the company's annual report, to help identify undervalued stocks. Other investors discount the relevance of this information.

book value

the money amount of an ASSET as stated in a company's LEDGER accounts and BALANCE SHEET. FIXED ASSETS are often stated at NET BOOK VALUE (original cost less cumulative DEPRECIATION), while CURRENT ASSETS are stated at original cost or market value, whichever is the lower.

book value

The value of an asset as reflected on the books and records of a company,taking into account the original book cost of acquisition and then deducting depreciation expenses charged over the years and adding capital expenditures.Book value rarely bears any relationship to the true value of assets.

References in periodicals archive ?
Moreover, there are 25 stocks within this group that are trading below their book values with an average P/B ratio of 0.
If the fundamentals are in place, a stock that is trading below book value may indicate that the company is being incorrectly valued.
Generally, capital allocated to the product is 1 percent or less of the contract book value, according to the report, rendering the business exceedingly attractive.
Section IV provides the empirical evidence of regressing stock price on earnings, book value, and sales.
Total Value of Operations = Book Value of Operating Assets in Place + Excess Replacement Value over Book Value of Operating Assets in Place + Expected Future EVA from Operating Assets in Place + Expected Future EVA from Future Growth
His remarks came a day after Masashi Teranishi, chairman of the Japanese Bankers Association, requested that the government buy collateral real estate based on effective book value.
In a model incorporating both earnings and book value to explain market values, accounting earnings and book value both have incremental value relevance over each other for the U.
It's a two-step test that first determines whether the book value of the reporting unit's acquired assets exceeds the unit's so-called fair value -- typically measured through discounted cash-flow estimates.
Depending on the structure of the adverse-development cover, its net cost might decrease the book value of the company being acquired.
In virtually all cases, the figure for economic book value is higher - sometimes substantially - than accounting book value.
The capital discard measures are constructed using data on the gross book value of depreciable capital assets.