Book value

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Book value can mean:

  • The net asset value of a company, determined by calculating total assets minus intangible assets (patents, goodwill) and liabilities. It is how much the company would have left in assets if it went out of business immediately. [1] Comparing the book value to the company's market value can indicate whether a stock is under- or overpriced.
  • The value at which an asset is carried on a balance sheet. In other words, the cost of an asset minus accumulated depreciation. [2]

References[edit]

  1. What is book value?. Investorwords.
  2. Book Value. Investopedia.