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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.

Featured Tip

Deflation and Asset ValuesIn a deflationary environment assets tend to decline in value. Buying a dollar at 50 cents may not be a bargain if the asset value is dropping. Historically, investors have found attractive opportunit ... Read more