Financial Terms | |
book value and book value per share |
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Definition of book value and book value per sharebook value and book value per shareGenerally speaking, these terms
Related Terms:Book value per shareThe ratio of stockholder equity to the average number of common shares. book value Book Value per ShareThe book value of a company divided by the number of shares NPV (net present value of cash flows)Same as PV, but usually includes a subtraction for an initial cash outlay. PPF (periodic perpetuity factor)a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity. PV (present value of cash flows)the value in todayâ€™s dollars of cash flows that occur in different time periods. Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity American sharesSecurities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign Annual fund operating expensesFor investment companies, the management fee and "other expenses," Annual percentage rate (APR)The periodic rate times the number of periods in a year. For example, a 5% Annual percentage yield (APY)The effective, or true, annual rate of return. The APY is the rate actually Annualized holding period returnThe annual rate of return that when compounded t times, would have Authorized sharesNumber of shares authorized for issuance by a firm's corporate charter. Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in Bond valueWith respect to convertible bonds, the value the security would have if it were not convertible BookA banker or trader's positions. Bookcash A firm's cash balance as reported in its financial statements. Also called ledger cash. Book profitThe cumulative book income plus any gain or loss on disposition of the assets on termination of the SAT. Book runnerThe managing underwriter for a new issue. The book runner maintains the book of securities sold. Book valueA company's book value is its total assets minus intangible assets and liabilities, such as debt. A Book-entry securitiesThe Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Capital market imperfections viewThe view that issuing debt is generally valuable but that the firm's Carrying valuebook value. Cash flow from operationsA firm's net cash inflow resulting directly from its regular operations Cash flow per common shareCash flow from operations minus preferred stock dividends, divided by the Cash-surrender valueAn amount the insurance company will pay if the policyholder ends a whole life Commercial paperShort-term unsecured promissory notes issued by a corporation. The maturity of Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s performance Presentation Standards Implementation Compounding periodThe length of the time period (for example, a quarter in the case of quarterly Conversion valueAlso called parity value, the value of a convertible security if it is converted immediately. Credit periodThe length of time for which the customer is granted credit. Direct paperCommercial paper sold directly by the issuer to investors. Discount periodThe period during which a customer can deduct the discount from the net amount of the bill Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an Dividends per shareAmount of cash paid to shareholders expressed as dollars per share. Dividends per shareDividends paid for the past 12 months divided by the number of common shares Earnings per share (EPS)EPS, as it is called, is a company's profit divided by its number of outstanding Euro-commercial paperShort-term notes with maturities up to 360 days that are issued by companies in Evaluation periodThe time interval over which a money manager's performance is evaluated. Exercise valueThe amount of advantage over a current market transaction provided by an in-the-money Expected valueThe weighted average of a probability distribution. Expected value of perfect informationThe expected value if the future uncertain outcomes could be known Extraordinary positive valueA positive net present value. Face valueSee: Par value. FHA prepayment experienceThe percentage of loans in a pool of mortgages outstanding at the origination Firm's net value of debtTotal firm value minus total firm debt. Fully diluted earnings per sharesEarnings per share expressed as if all outstanding convertible securities Funds From Operations (FFO)Used by real estate and other investment trusts to define the cash flow from Future valueThe amount of cash at a specified date in the future that is equivalent in value to a specified Growing perpetuityA constant stream of cash flows without end that is expected to rise indefinitely. Holding periodLength of time that an individual holds a security. Holding period returnThe rate of return over a given period. Income statement (statement of operations)A statement showing the revenues, expenses, and income (the Intrinsic value of an optionThe amount by which an option is in-the-money. An option which is not in-themoney Intrinsic value of a firmThe present value of a firm's expected future net cash flows discounted by the Investment valueRelated:straight value. Issued share capitalTotal amount of shares that are in issue. Related: outstanding shares. Limit order bookA record of unexecuted limit orders that is maintained by the specialist. These orders are Liquidation valueNet amount that could be realized by selling the assets of a firm after paying the debt. Loan valueThe amount a policyholder may borrow against a whole life insurance policy at the interest rate Management/closely held sharespercentage of shares held by persons closely related to a company, as Market value1) The price at which a security is trading and could presumably be purchased or sold. Market value ratiosRatios that relate the market price of the firm's common stock to selected financial Market value-weighted indexAn index of a group of securities computed by calculating a weighted average Market-book ratioMarket price of a share divided by book value per share. Matched bookA bank runs a matched book when the distribution of maturities of its assets and liabilities are equal. Maturity valueRelated: par value. Multiperiod immunizationA portfolio strategy in which a portfolio is created that will be capable of Net adjusted present valueThe adjusted present value minus the initial cost of an investment. Net asset value (NAV)The value of a fund's investments. For a mutual fund, the net asset value per share Net book valueThe current book value of an asset or liability; that is, its original book value net of any Net operating lossesLosses that a firm can take advantage of to reduce taxes. Net operating marginThe ratio of net operating income to net sales. Net periodThe period of time between the end of the discount period and the date payment is due. Net present value (NPV)The present value of the expected future cash flows minus the cost. Net present value of growth opportunitiesA model valuing a firm in which net present value of new Net present value of future investmentsThe present value of the total sum of NPVs expected to result from Net present value ruleAn investment is worth making if it has a positive NPV. Projects with negative NPVs Net salvage valueThe after-tax net cash flow for terminating the project. Neutral periodIn the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not Open bookSee: unmatched book. Open-market operationPurchase or sale of government securities by the monetary authorities to increase or Open-market purchase operationA systematic program of repurchasing shares of stock in market Operating cash flowEarnings before depreciation minus taxes. It measures the cash generated from Operating cycleThe average time intervening between the acquisition of materials or services and the final Operating exposureDegree to which exchange rate changes, in combination with price changes, will alter a Operating profit marginThe ratio of operating margin to net sales. Operating leaseShort-term, cancelable lease. A type of lease in which the period of contract is less than the Operating leverageFixed operating costs, so-called because they accentuate variations in profits. Operating riskThe inherent or fundamental risk of a firm, without regard to financial risk. The risk that is Operationally efficient marketAlso called an internally efficient market, one in which investors can obtain Original face valueThe principal amount of the mortgage as of its issue date. Outstanding share capitalIssued share capital less the par value of shares that are held in the company's treasury. Outstanding sharesshares that are currently owned by investors. OverperformWhen a security is expected to appreciate at a rate faster than the overall market. PaperMoney market instruments, commercial paper and other. Paper gain (loss)Unrealized capital gain (loss) on securities held in portfolio, based on a comparison of Par valueAlso called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date. Parity valueRelated:conversion value
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