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Financial Terms | |
Book value |
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Definition of Book valueBook valueA company's book value is its total assets minus intangible assets and liabilities, such as debt. A BOOK VALUEAn asset’s cost basis minus accumulated depreciation. Book valueAn asset’s original cost, less any depreciation that has been subsequently incurred. book valueNet worth of the firm’s assets or liabilities according Book ValueThe value of an asset as carried on the balance sheet of a
Related Terms:book value and book value per shareGenerally speaking, these terms BOOK VALUE OF COMMON STOCKThe theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. book value equals: 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 Net book valueThe current book value of an asset or liability; that is, its original book value net of any accumulated depreciationA contra, or offset, account that is coupled Average accounting returnThe average project earnings after taxes and depreciation divided by the average balance sheetA term often used instead of the more formal and correct Basic Earnings Power RatioPercentage of earnings relative to total assets; indication of how book rate of returnAccounting income divided by book value. Book Returnsbook yield is the investment income earned in a year on a portfolio of assets purchased over a number of years and at different interest rates, divided by the book value of those assets. Carrying valuebook value. Common stock ratiosRatios that are designed to measure the relative claims of stockholders to earnings Debt RatioThe percentage of debt that is used in the total capitalization of a Declining balanceAn accelerated depreciation method that calculates depreciation each year by applying a fixed rate to the asset’s book (cost–accumulated depreciation) value. Depreciation stops when the asset’s book value reaches its salvage value. Fixed Assets Turnover RatioA measure of the utilization of a company's fixed assets to GainThe profit earned on the sale of an asset, computed by subtracting its book value GoodwillThe excess of the price paid to buy another company over the book value of Impairment LossA special, nonrecurring charge taken to write down an asset with an overstated Inventory Turnover RatioProvides a measure of how often a company's inventory is sold or Mark-to-marketThe process whereby the book value or collateral value of a security is adjusted to reflect Market-book ratioMarket price of a share divided by book value per share. market capitalization, or market capCurrent market value per share of Market to Book RatioMeasure of the book value of a company on a per share basis. It is market value addedMarket value of equity minus book value. net worthGenerally refers to the book value of owners’ equity as reported net worthbook value of common stockholders’ equity plus preferred stock. owners' equityRefers to the capital invested in a business by its shareowners Pooling of interestsAn accounting method for reporting acquisitions accomplished through the use of equity. Price/book ratioCompares a stock's market value to the value of total assets less total liabilities (book Quick RatioA measure of how easily a company can use its most liquid current Return on Common Equity RatioA measure of the percentage return earned on the value of the Return on investment (ROI)Generally, book income as a proportion of net book value. Return on Total Assets RatioA measure of the percentage return earned on the value of the Stockholder equityBalance sheet item that includes the book value of ownership in the corporation. It sunk costA cost that has been paid and cannot be undone or reversed. Total Asset Turnover RatioA measure of the utilization of all of a company's assets to Value managerA manager who seeks to buy stocks that are at a discount to their "fair value" and sell them at Write-downDecreasing the book value of an asset if its book value is overstated compared to current market values. Account ValueThe sum of all the interest options in your policy, including interest. Accumulated ValueAn amount of money invested plus the interest earned on that money. Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a Benefit ValueThe amount of cash payable on a benefit. 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-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 Book IncomePretax income reported on the income statement. Book inventoryThe amount of money invested in inventory, as per a company’s 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. business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay CAPITAL IN EXCESS OF PAR VALUEWhat a company collected when it sold stock for more than the par value per share. Cash-surrender valueAn amount the insurance company will pay if the policyholder ends a whole life Cash Surrender ValueThis is the amount available to the owner of a life insurance policy upon voluntary termination of the policy before it becomes payable by the death of the life insured. This does not apply to term insurance but only to those policies which have reduced paid up values and cash surrender values. A cash surrender in lieu of death benefit usually has tax implications. Cash Surrender ValueBenefit that entitles a policy owner to an amount of money upon cancellation of a policy. Cash value added (CVA)A method of investment appraisal that calculates the ratio of the net present value of an Conversion valueAlso called parity value, the value of a convertible security if it is converted immediately. Economic Value Added (EVA)Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge economic value added (EVA)a measure of the extent to which income exceeds the dollar cost of capital; calculated economic value added (EVA)Term used by the consulting firm Stern Stewart for profit remaining after deduction of the cost Exercise valueThe amount of advantage over a current market transaction provided by an in-the-money Exit valueThe value that an asset is expected to have at the time it is sold at a predetermined Expected valueThe weighted average of a probability distribution. Expected ValueThe value of the possible outcomes of a variable weighted by the 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. Face ValueThe nominal value of a security. Also called the par value. Face valueThe maturity value of a security. Also known as par value, face valuePayment at the maturity of the bond. Also called par value or maturity value. Face ValueThe payoff value of a bond upon maturity. Also called par value. See principal. Face ValueThe nominal value which appears on the face of a document recording an entitlement, generally an amount of money that has to be repaid on the maturity of a debt instrument. Fair market valueThe price that an asset or service will fetch on the open market. Fair Market ValueThe highest price available, expressed in terms of cash, in an open and unrestricted market between informed, prudent parties acting at arm's length and under no compulsion to transact. Fair ValueThe amount at which an asset could be purchased or sold or a liability incurred or Firm's net value of debtTotal firm value minus total firm debt. Future valueThe amount of cash at a specified date in the future that is equivalent in value to a specified Future ValueThe amount a given payment, or series of payments, will be worth future valuethe amount to which one or more sums of Future valueThe value that a sum of money (the present value) earning future valueAmount to which an investment will grow after earning interest. Future ValueThe amount to which a payment or series of payments will grow by a given future date when compounded by a given interest rate. FVIF future value interest factor. Intrinsic value of a firmThe present value of a firm's expected future net cash flows discounted by the Intrinsic value of an optionThe amount by which an option is in-the-money. An option which is not in-themoney Investment valueRelated:straight value. 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. Liquidation ValueThe net proceeds (after taxes and expenses) of selling the assets liquidation valueNet proceeds that would be realized by selling the firm’s assets and paying off its creditors. Loan valueThe amount a policyholder may borrow against a whole life insurance policy at the interest rate Market value1) The price at which a security is trading and could presumably be purchased or sold. Market valueThe price at which a product or service could be sold on the open market. Market ValueA quoted market price per unit times the number of units being valued. Synonymous Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |