Book Value

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Dictionary Says

Definition of 'Book Value'

1. The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated depreciation.

2. The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

3. The initial outlay for an investment. This number may be net or gross of expenses such as trading costs, sales taxes, service charges and so on.

Also known as "net book value (NBV)".

In the U.K., book value is known as "net asset value".
Investopedia Says

Investopedia explains 'Book Value'

Book value is the accounting value of a firm. It has two main uses:

1. It is the total value of the company's assets that shareholders would theoretically receive if a company were liquidated.

2. By being compared to the company's market value, the book value can indicate whether a stock is under- or overpriced.

3. In personal finance, the book value of an investment is the price paid for a security or debt investment. When a stock is sold, the selling price less the book value is the capital gain (or loss) from the investment.

Video Definition

Search results for

'Book Value'

  • Understanding Book Value

    http://www.investopedia.com/video/play/book-value
    Book value is a component in many ratios that investors use to evaluate stocks.
    Find out ... Videos /. Understanding Book Value. Next video ...

  • Book Value: How Reliable Is It For Investors?

    http://www.investopedia.com/articles/fundamental-analysis/09/book-value-basics.asp
    Book Value: How Reliable Is It For Investors? ... Among these, the book value and the
    price-to-book ratio (P/B ratio) are staples for value investors. ...

  • Five Book Value Bargains

    http://stocks.investopedia.com/stock-analysis/2009/Five-Book-Value-Bargains-DRYS-EXM-EGLE-NM-GNK-OCNF0626.aspx
    ... Five Book Value Bargains. ... Many believe that buying stocks below their book
    value may help to protect against the potential downside. ...

  • Digging Into Book Value

    http://www.investopedia.com/articles/stocks/07/book_value.asp
    ... Digging Into Book Value. ... Book value is the accounting value of the company's assets
    less all claims senior to common equity (such as the company's liabilities). ...

  • Using The Price-To-Book Ratio To Evaluate Companies

    http://www.investopedia.com/articles/fundamental/03/112603.asp
    ... Price-to-book value (P/B) is the ratio of market price of a company's shares
    (share price) over its book value of equity. The book ...

  • Investment Valuation Ratios: Price/Book Value Ratio | Investopedia

    http://www.investopedia.com/university/ratios/investment-valuation/ratio2.asp
    Investment Valuation Ratios: Price/Book Value Ratio. ... investors which compares a stock's
    per-share price (market value) to its book value (shareholders' equity). ...

  • Investing Below Book Value

    http://stocks.investopedia.com/stock-analysis/2011/Investing-Below-Book-Value-SNE-CX-MT-BAC0427.aspx
    ... Investing Below Book Value. Posted ... One way investors attempt to do that
    is investing in stocks trading below book value. Strictly ...

  • Ratio - Book Value Per Share (BV)

    http://www.investopedia.com/university/ratios/bookvaluepershare.asp
    ... Book Value Per Share - BV. =. Stockholders Equity - Preferred Stock. ... Book Value Analysis:
    For the most part the book value really doesn't tell us a whole lot. ...

  • 4 Reasons Why Book Value Growth Matters

    http://stocks.investopedia.com/stock-analysis/2010/4-Reasons-Why-Book-Value-Growth-Matters-BRK.A-MDCI-JJSF-URBN-NKE-BKE0608.aspx
    We look at four stocks and why their book value growth is an excellent way to tell
    if a company is doing a good job. ... 4 Reasons Why Book Value Growth Matters. ...

  • 5 Book Value Bargains

    http://stocks.investopedia.com/stock-analysis/2010/5-Book-Value-Bargains-DRYS-BP-L-SUNH-SVU0707.aspx
    ... 5 Book Value Bargains. Posted ... multiple. In fact, Graham would only buy a stock
    if it traded at a price less than two-thirds of its book value. ...

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