Modified Book Value


DEFINITION of 'Modified Book Value'

An asset-based method of determining how much a business is worth by adjusting the value of its assets and liabilities according to their fair market value. This technique also includes the value of all of the business's intangible assets and liabilities, such as goodwill and pending litigation.


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BREAKING DOWN 'Modified Book Value'

Liquidation value and replacement value are two other asset-based valuation methods. Businesses are also commonly valued using market multiple methods, capitalization rates, excess earnings or discounted cash flow. Companies that specialize in business valuation can be hired to determine a business's value for a number of purposes, including a merger or acquisition, shareholder transaction, estate planning and financial reporting.

  1. Business Valuation

    The process of determining the economic value of a business or ...
  2. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  3. Liability

    A company's legal debts or obligations that arise during the ...
  4. Asset Valuation

    A method of assessing the worth of a company, real property, ...
  5. Book Value

    1. The value at which an asset is carried on a balance sheet. ...
  6. Asset

    1. A resource with economic value that an individual, corporation ...
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