Liquidation Value

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Dictionary Says

Definition of 'Liquidation Value'

The total worth of a company's physical assets when it goes out of business or if it were to go out of business. Liquidation value is determined by assets such as the real estate, fixtures, equipment and inventory a company owns. Intangible assets are not included in a company's liquidation value. Intangible assets include a business's intellectual property, goodwill and brand recognition.
Investopedia Says

Investopedia explains 'Liquidation Value'

If a company were to be sold rather than liquidated, both liquidation value and intangible assets would be considered to determine the company's going-concern value. Value investors will look at the difference between a company's market capitalization and its going-concern value to determine whether the company's stock is currently a good buy.

Liquidation value can also refer to the cash value of a single asset.
Search results for

'Liquidation Value'

  • Warren Buffett: How He Does It

    http://www.investopedia.com/articles/01/071801.asp
    ... The liquidation value doesn't include intangibles such as the value of a brand
    name, which is not directly stated on the financial statements. ...

  • Digging Into Book Value

    http://www.investopedia.com/articles/stocks/07/book_value.asp
    ... for a stock. While it's not technically the same thing as the liquidation
    value of the shares, it is a proxy for it. In many cases ...

  • Value Investing: Famous Value Investors | Investopedia

    http://www.investopedia.com/university/value-investing/value-investing7.asp
    ... As of 2010, his net returns averaged 19% a year and he managed $22 billion. He is
    risk-averse and bases his value stock picks on companies' liquidation value. ...

  • Company Clone Cost Reveals True Value

    http://www.investopedia.com/articles/fundamental-analysis/08/reproduction-cost.asp
    ... If the company itself or the industry as a whole is no longer viable, the analysis
    would be of liquidation value of the company's assets. ...

  • The Bank Of America Enigma

    http://stocks.investopedia.com/stock-analysis/2011/The-Bank-Of-America-Enigma-BAC-C-JPM-USB-STD0126.aspx
    ... However, tangible book value represents a truer picture of the firm's liquidation
    value and suggests a floor on the stock, which is slightly above these ...

  • Trading The Odds With Arbitrage

    http://www.investopedia.com/articles/trading/04/111004.asp
    ... liquidation assets. For example, say Company A has a book (liquidation)
    value of $10/share and is currently trading at $7/share. ...

  • Liquidation Blues: When Mutual Funds Close

    http://www.investopedia.com/articles/mutualfund/09/mutual-fund-liquidation.asp
    ... A liquidation involves the sale of all of a fund's assets and the distribution ... The
    Thrill Is Gone Liquidations often occur after a fund has dropped in value. ...

  • The Intelligent Investor: Benjamin Graham

    http://www.investopedia.com/articles/07/ben_graham.asp
    ... downside risk. He did this by buying shares of companies whose shares traded
    far below the companies' liquidation value. (To find ...

  • A Guide To ETF Liquidation

    http://www.investopedia.com/articles/exchangetradedfunds/09/etf-out-of-business.asp
    ... check, for whatever was held in the ETF. The amount of the liquidation
    distribution is based on the net asset value (NAV) of the ETF. ...

  • Nothing Special About SPACs

    http://stocks.investopedia.com/stock-analysis/2009/Nothing-Special-About-SPACs-HEK-SEED-GSL-APP-JMBA0427.aspx
    ... Thomas Kirchner, manager of the Pennsylvania Avenue Event-Driven Fund, invested
    in SPACs in 2008 because of the discounts to liquidation value, which were ...

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