Investopedia explains 'Adjusted Book Value'
There are literally dozens of methods an investor can use to assign value or price to a business. Deciding which form of valuation method to use involves several factors such as the firm type and availability of information.
The adjusted book value method of valuation is most often used to assign value to distressed companies facing potential liquidation or companies that hold tangible assets such as property or securities. Analysts may use adjusted book value to determine a bottom line price for a company’s value when anticipating bankruptcy or sale due to financial distress.
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