book value

Definitions (2)

1. A company's common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets such as goodwill. This is how much the company would have left over in assets if it went out of business immediately. Since companies are usually expected to grow and generate more profits in the future, market capitalization is higher than book value for most companies. Since book value is a more accurate measure of valuation for companies which aren't growing quickly, book value is of more interest to value investors than growth investors.
2. The value of an asset as it appears on a balance sheet, equal to cost minus accumulated depreciation.

Use book value in a sentence

Sometimes you may find that you won't be able to get anywhere near the book value for your old tade in.

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The book value was the most meaningful representation as the asset was brand new and we had recently updated our inventory.

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Bad Movies R Us' compared their equity of $15 to Asylum's, and calculated that, with 30 shares of common stock outstanding, the book value was a whopping $.50 per.

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accrual of discount modified book value