- book value
- The value at which an asset is carried and reported on the owner's balance sheet. For debt securities, the current book value may be the purchase price plus accretion ( in the case of securities purchased at a discount) or the purchase price minus amortization ( in the case of securities purchased at a premium). Book value may differ, perhaps significantly, from market value. American Banker Glossary————A company's total assets minus intangible assets and liabilities ( liability), such as debt. A company's book value might be higher or lower than its market value. Bloomberg Financial Dictionary————The value at which a loan is shown in the balance sheet of the company which has borrowed the money. Note that book value is not necessarily the market value of the loan. Dresdner Kleinwort Wasserstein financial glossary————Common shareholder's equity on a per share basis. It is calculated by subtracting liabilities from assets and dividing the result by the number of outstanding shares of stock. The book value is not necessarily the same as the market value. Exchange Handbook Glossary————This is an accounting term. The book value of a company is determined by adding up all of the company's assets and then deducting all of its debt and liabilities. The Book value of a company's assets or securities may have little relationship to the market value of the company.
* * *book value book value ➔ value1
* * *The value at which fixed assets are listed in the balance sheet. Effectively the original purchase cost minus any allowance for depreciation.
* * *book value UK US noun [C, usually singular or U] (ABBREVIATION BV) ACCOUNTING► (also carrying amount, also carrying value) the value a company gives to something it owns in its accounts. The real value of this if it were sold could be more or less than this amount: »
The bank's shares are trading at under half their book value.»
Most shares are issued at a discount to book value.► (also book equity) the value of a company as shown in its accounts. To get this value the amount a company owes is taken away from the amount a company owns: »
It is a company that now has a book value of £219 million.»
We are not about to buy a bank at 21/2 times book value.
Financial and business terms. 2012.