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Book value

• A company's book value is its total assets minus intangible assets and liabilities, such as debt. A company's book value might be more or less than its market value.

• The strict accounting value of an asset, calculated by subtracting its accumulated depreciation from installed cost. Also, the total value of common equity at the date of the balance sheet.

• Usually Book Value per Share. Calculated by dividing the net worth of a company (common stock plus retained earnings) by the number of shares outstanding. This is the accounting value of a share of stock, the value of the company's assets that a shareholder would theoretically receive if a company were liquidated.
The book value may have no similarity to the actual cost per share on the stock market (called market value), or even to the sum of money that the shareholder would receive if the company dissolved. Companies that are running their businesses very successfully may sell at many times their book value, while those doing poorly may sell at a discount to their book value.
Increasing book value generally indicates that the company is accumulating assets faster than debt - a good sign. Decreasing book value may be due to research and development expenses, writing down assets, losing money from operations, or issuing more shares.

• The value at which a debt security is shown on the holder's balance sheet. Book value is often acquisition cost + amortization accretion, which may differ markedly from market value. It can be further defined as "tax book," "accreted book," or "amortized book" value.

 
 

Follow this link for all the terms related to value.

 
 Embedded terms in definition
 Accumulated depreciation
Amortization
Assets
Asset
Balance sheet
Book value per share
Book
Common equity
Common stock
Debt security
Debt
Depreciation
Discount
Equity
Expenses
Intangible assets
Intangible asset
Its
Liabilities
Market value
Market
Net worth
Net
Plus
Retained earnings
Security
Sell
Shares
Share
Stock market
Stock
Tangible asset
Total assets
 
 Related Terms
 
Adjusted present value
Annualized net present value anpv approach
Assessed value
Bond value
Book
Book cash
Book entry
Book entry securities
Book profit
Book runner
Book transfer
Book value per share
Book value weights
Carrying value
Cash surrender value
Conversion or stock value
Conversion value
Current principal value
Economic value added
Exercise value
Expected value
Expected value of a return
Expected value of perfect information
Extraordinary positive value
Extrinsic value
Face value
Face value of a bond
Fair value
Fair value difference
Firm's net value of debt
Future value
Future value interest factor
Future value interest factor for an annuity
Interest discounted annually present value of reversion
Interest impact on present value of ordinary annuity of 1 per period
Intrinsic value
Intrinsic value common stock
Intrinsic value of a firm
Intrinsic value of an option
Intrinsic value warrant
Investment value
Limit order book
Liquidation value
Liquidation value per share
Loan value
Market book ratio
Market to book ratio
Market value
Market value ratios
Market value weighted index
Market value weights
Matched book
Maturity value
Net adjusted present value
Net asset value
Net book value
Net present value
Net present value approach
Net present value of future investments
Net present value of growth opportunities
Net present value profiles
Net present value rule
Net salvage value
Open book
Order book official
Original face value
Par value
Par value stocks
Parity value
Present value
Present value factor
Present value interest factor
Present value interest factor for an annuity
Present value of a future payment
Present value of growth opportunities
Price to book ratio
Price value of a basis point
Relative value
Replacement value
Residual value
Salvage value
Short book
Standardized value
Stated value
Straight bond value
Straight value
Surrender value
Terminal value
Time value
Time value of an option
Time value of money
Unit value
Unmatched book
Utility value
Value added tax
Value additivity principal
Value at risk
Value at risk model
Value date
Value dating
Value fund or value stocks
Value funds
Value line financial strength
Value line safety
Value manager

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