Book Value

Knowledge Center

   

Description of Book Value. Explanation.

Contents

  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print
 

Definition Book Value. Description.


1. Book Value of a firm is a company's common stock equity, as it appears on a balanced sheet.


It represents the net worth of a firm to its shareholders ("Shareholders Equity"), based on the difference between its total assets and its liabilities.


Calculating Book Value. Take the Total Assets of a firm and subtract the current liabilities, long-term liabilities and Preferred Stock. If you divide the book value by the number of shares issued, you get the Book Value per Share.


Note that normally the book value of a firm is substantially lower than its Market Value. The bigger the difference between market value and Book Value, the more the company is regarded by investors.


Book Value can help to find underpriced stocks and is also an indication of the ultimate Liquidation Value of a company.


2. The Book Value of an Asset on a balance sheet equals the cost of the asset minus any accumulated Depreciation. For example, a machine is initially put on the books at its cost when purchased. Its value will be reduced each year as depreciation is being charged.


Book Value Forum
  Quotes on Book Value. Quotations
Hi, do you know of a remarkable, humorous quote by a famous person or a proverb related to the book value of assets and liabilities?
Please enter a reaction to share it for other people to enjoy! Please use this template:
Author Name Year of Bi...
     
 

Book Value Special Interest Group


Special Interest Group

 

Best Practices - Book Value Premium

Expert Tips - Book Value Premium

Resources - Book Value Premium

Corporate Valuation for Businesses

Presentation that elaborates on corporate valuation, including the following sections:
1. Three types of value:
- Book Value
- Market V...
Usage (application): Corporate Valuation, Book Value, Market Value, Intrinsic Value, Fundamental Value, M&A, VBM, Fundamental Investing
 
 

News

Book Value
     
 

Videos

Book Value
     
 

Presentations

Book Value
     
 

More

Book Value
     

Compare with: Adjusted Book Value  |  Tangible Book Value  |  Liquidation Value  |  Market Value  |  Market Value Added  |  P/E Ratio  |  PEG Ratio  |  EBIT  |  EBITDA  |  Return on Equity  |  Fair Value

Special Interest Group Leader

You here


 

Return to Management Hub: Decision-making & Valuation  |  Finance & Investing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Book Value summary and forum.

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2016 12manage - The Executive Fast Track. V14.1 - Last updated: 26-9-2016. All names tm by their owners.