Book Value

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Related to net asset value: book value, Net assets, Net Asset Value Per Share

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 ?
"Share repurchases may be a plus for REIT net asset values in the short term, but over time the resultant increase in leverage could impair credit quality," he said.
Meezan Islamic Income Fund (MIIF): The net asset value of this fund was Rs2.4 billion as on May 31, 2013.
Section 1(b) seeks information about the private funds advised, such as gross and net asset value and value of investments in other private funds.
The four stocks that have continued to trade comprise about one-quarter of the Egypt fund's current net asset value of $27 million, according to Dave Nadig, head of research at ETF-oriented web site IndexUniverse.com.
Money market funds seek a stable $1.00 net asset value (NAV).
5, the fund's net asset value stood at $9.95 per share, which represents a new high.
After adjusting for the impact of the removal of stamp duty relief underlying net asset value growth at Unite was 11 per cent.
It occurs when a mutual fund or intermediary permits an investor to purchase fund shares after the day's net asset value is calculated, as though the purchase order were placed earlier in the day.
Financial software solutions provider Trema has launched its NAV Monitor product for calculating and reporting net asset value.
That is, all the buy orders and sell orders for a mutual fund for an entire trading day are executed at the net asset value calculated at the normal close of business of the New York Stock Exchange, 4:00 p.m.
Roye: [The law] generally requires every mutual fund and every selling dealer of fund shares to buy and sell the fund's shares at a price based on the current net asset value that is next computed after receipt of the purchase or sale order.