liquidating value


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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.

liquidating value

The estimated value of a firm in the event that its assets are sold and its debts paid. This value is often stated on a per-share basis so as to indicate some kind of minimum value for a given share of the stock. Liquidation value above the stock's market price indicates the firm is worth more dead than alive.
References in periodicals archive ?
to be a consequence of not having liquidating value (since liabilities
The ruling was consistent with the decision in Spaulding Bakeries, Inc., 27 T.C.684 (1957), aff'd, 252 F.2d 693 (2d Cir.1958), where a parent owned both non-voting preferred stock and voting common stock of its subsidiary, and, at the time of the subsidiary's liquidation, the value of the subsidiary's assets was less than the par value (liquidating value) of the preferred stock.
where MVE is/he product of a firm's share price and the number of common stock shares outstanding, PS is the liquidating value of the firm's outstanding preferred stock, DEBT is the value of the firm's short-term liabilities net of its short-term assets, plus the book value of the firm's long-term debt, and TA is the book value of the total assets of the firm.
In valuing assets, ordinarily the quick sale or liquidating value would be used.
Liquidating value and quick sale value are used interchangeably to mean "the amount which would be realized from the sale of an asset in a situation where financial pressures cause the taxpayer to sell in a short period of time." "Forced sale value,"a lower amount, also is used when extreme financial pressures make it appropriate.