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.

2. See book value per share.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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 0.65x.

Do stocks trading below book value offer great bargains?

"If the fundamentals are in place, a stock that is trading below book value may indicate that the company is being incorrectly valued.

Are stocks trading below their book value a good bet?

The mean (median) for book value of equity (BV) is 25.79 (26.64).

Information content of stock repurchases

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.

Moody's: Insurers Dive into Book Value Wraps Despite Risks

We hypothesize and find that including book value of equity in the simple earnings capitalization model does not eliminate the negative price-earnings relation for loss firms.

The role of book value in high-tech valuation

Changes to energy markets are now transforming the real estate management field, with opportunities to generate savings and revenues that can boost the bottom line for building owners, while raising the book value and investment cache of the properties under management.

Juicing up the bottom line with a dash of 'secret sauce'

If we make the assumption that the accounting measure of capital invested (book value of capital) is a good measure of capital invested in assets today, this approach implies that firms that earn positive excess return cash flows will trade at market values higher than their book values and that the reverse will be true for firms that earn negative excess return cash flows.

2 Discounted cash flow valuation

Because the P/B method is designed to capture collective asset values above recorded book value and the market is valuing the company at approximately its book value, there appears to be no goodwill value.

The benefits of hybrid valuation models

3Q FIXED ANNUITY LEADERS DISTRIBUTION CHANNEL FAVORITES Channel Company Product Product Type Banks and S&Ls New York MainStay Single Book Value Life Prem.

The top fixed annuity sellers in 3Q

Department of the Treasury and the Internal Revenue Service on the adoption of an alternative tax book value (TBV) method for depreciation expense for purposes of the allocation and apportionment of expenses under section 861 of the Internal Revenue Code.

Section 861: adoption of alternative tax book value method for depreciation expense: September 17, 2004

Public land developers nationwide possessed about 28,000 hectares of land at the end of fiscal 2001, with a combined book value of 7.2 trillion yen.

Public land developers hold 2.5 tril. yen in bad assets: study

We examine the operating performance of the asset buyers during a seven-year period around the asset purchase, measuring performance in terms of pretax operating cash flow scaled by the book value of assets.