Book Value

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Book Value

The current value of an asset. The book value of an asset at any time is its cost minus its accumulated depreciation. (Depreciation reflects the decrease in the useful life of an asset due to use of the asset.) Companies use book value to determine the point at which they have recovered the cost of an asset.

The net asset value of a company's Securities. This is calculated by subtracting from the company's total assets the following items: intangible assets (such as goodwill), current liabilities, and long-term liabilities and Equity issues. This figure, divided by the total number of bonds or of shares of stock, is the book value per bond or per share of stock.

The calculation of book value is important in determining the value of a company that is being liquidated. For example, if a corporation has 100,000 shares of stock issued and outstanding and its assets total $5 million and its intangible assets and all liabilities total $1.6 million, its net asset value is $3.4 million and its book value per share is $34.

book value

n. a determination of the value of a corporation's stock by adding up the stated value of corporate assets as shown on the books (records) of a corporation and deducting all the liabilities (debts) of the corporation. This may not be the true value of the corporation or its shares since the assets may be under- or over-valued.

References in periodicals archive ?
If an asset is disposed of for less than book value, a realized loss will be recognized.
As expected, accounting earnings and book values in all four countries are positively correlated with price, indicating that accounting earnings and book value are important variables in explaining firm values in all four countries.
These stocks trade at about 50 percent of book value,'' compared with a more typical valuation of four to five times book value, said Jeff Herr, who trades unlisted stocks at Chicago Corp.
Summary: Book value represents that part of the accounting value of a business that will be left after debts are paid off.
7 billion, based on the total book value of domestic banks reaching NT$2.
According to Kelley Blue Book's New Car Blue Book Value, this week's typical sale price for a 2004 4-door LX automatic is $19,697, which is right in between the dealer invoice price and the MSRP.
RCC) buy collateral-backing bad loans held by banks at effective book value.
Presently, a single realty transaction by an insurance firm with the same individual, the same related party, or the same affiliate cannot exceed 35% of its book value, or 70% of its book value for the outstanding transaction amount with the same individual, the same related party, or the same affiliate.
com, the nation's first and only true online automobile dealership, vehicles are sold at no-haggle prices below Kelly Blue Book value and come with a three-day return policy and 75,000-mile limited warranty, eliminating the common concerns some customers may have about purchasing a used vehicle online.
Kelley Blue Book is one of the most trusted and recognized names in car buying, and we're delighted to integrate its New Car Blue Book value directly into the purchasing process," said Scott Painter, Zag founder and CEO.
TowerStreet's online point-of-sale system will integrate Blue Book Values search technology to seamlessly provide agents and brokers with vehicle identification and valuation information necessary to rate and underwrite a broad range of personal and commercial vehicles, trailers, and watercraft.
For Carver, tangible book value as of December 31, 1998 was approximately $29.