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 ?
The repurchase price for the shares will be the Fund's net asset value per share as determined at the close of regular trading on the Taiwan Stock Exchange on December 29, 2006 or, if the Taiwan Stock Exchange is not open on December 29, 2006, at the opening of the New York Stock Exchange on December 29, 2006.
The Fund's net asset value per share may fluctuate between the deadline for participating in the repurchase offer (December 15, 2006) and the pricing date of the repurchase offer (December 29, 2006).
Market price, annualized dividend yield, net asset value are historical and will fluctuate and do not guarantee future results.