| 1. | the value of a business, property, etc., as stated in a book of accounts (distinguished from market value ). |
| 2. | total assets minus all liabilities; net worth. |
| book value n. The monetary amount by which an asset is valued in business records, a figure not necessarily identical to the amount the asset could bring on the open market. |
Book Value
1. The value at which an asset is carried on a balance sheet. In other words, the cost of an asset minus accumulated depreciation.
2. The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.
Investopedia Commentary
Book value is the accounting value of a firm. It has two main uses:
1) It is the total value of the company's assets that shareholders would theoretically receive if a company were liquidated.
2) By being compared to the company's market value, the book value can indicate whether a stock is under or over-priced.
In the U.K., Book Value is known as "Net Asset Value."
Related Links
Value By The Book
Introduction to Fundamental Analysis
Advanced Financial Statement Analysis
In Position
See also: Balance Sheet, Carrying Value, Depreciation, Market Value, Stock Holder's Equity
Also spelled: bv, BV
book value
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.
See book value per share.