book value investment & finance definition
A
company’s total assets, minus its liabilities. To calculate the book value per
share, divide the company’s book value by the number of shares outstanding.
See book value in Wall Street Words
- The net dollar value at which an asset is carried on a firm's balance sheet. For example, a building that was purchased for $900,000 but that has depreciated $200,000 has a book value of $700,000. Book value, an accounting concept, often bears little relation to an asset's market value. Also called carrying value, depreciated cost.
- See book value per share.
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