Book value


Book value
A company's book value is its total assets minus intangible assets and liabilities, such as debt. A company's book value might be more or less than its market value. The New York Times Financial Glossary

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   The value at which fixed assets are listed in the balance sheet. Effectively the original purchase cost minus any allowance for depreciation.

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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.

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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.

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We are not about to buy a bank at 21/2 times book value.


Financial and business terms. 2012.