asset value

Definition

The net market value of a company's assets divided by the number of outstanding shares of that company's stock. Investors often use the asset value of a company when determining if the company's shares are overvalued or undervalued. For example, if the asset value per share is higher than the market price for a share then the stock could be considered undervalued.

Use asset value in a sentence

Investors, both beginners and veterans, should never fail to check on a company's asset value before deciding to buy into it.

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Comet LLCs asset value spiked exponentially when its namesake flashed by Newfoundland and managed to wipe out every living organism below it.

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My hedge fund manager decided to buy shares in the distressed bank because he reviewed the company's balance sheet and determined that it's asset value was significantly above the share value.

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