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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 assetâ€™s cost basis minus accumulated depreciation. Book ValueThe value of an asset as carried on the balance sheet of a Book valueAn assetâ€™s original cost, less any depreciation that has been subsequently incurred. book valueNet worth of the firmâ€™s assets or liabilities according
Related Terms:Book value per shareThe ratio of stockholder equity to the average number of common shares. book value Net book valueThe current book value of an asset or liability; that is, its original book value net of any BOOK VALUE OF COMMON STOCKThe theoretical amount per share that each stockholder would receive if a companyâ€™s assets were sold on the balance sheetâ€™s date. book value equals: book value and book value per shareGenerally speaking, these terms Book Value per ShareThe book value of a company divided by the number of shares Average accounting returnThe average project earnings after taxes and depreciation divided by the average Carrying valuebook value. Common stock ratiosRatios that are designed to measure the relative claims of stockholders to earnings 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. 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 Return on investment (ROI)Generally, book income as a proportion of net book value. Stockholder equityBalance sheet item that includes the book value of ownership in the corporation. It 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. Declining balanceAn accelerated depreciation method that calculates depreciation each year by applying a fixed rate to the assetâ€™s book (costâ€“accumulated depreciation) value. Depreciation stops when the assetâ€™s book value reaches its salvage value. accumulated depreciationA contra, or offset, account that is coupled balance sheetA term often used instead of the more formal and correct market capitalization, or market capCurrent market value per share of net worthGenerally refers to the book value of ownersâ€™ equity as reported owners' equityRefers to the capital invested in a business by its shareowners sunk costA cost that has been paid and cannot be undone or reversed. Basic Earnings Power RatioPercentage of earnings relative to total assets; indication of how Debt RatioThe percentage of debt that is used in the total capitalization of a Fixed Assets Turnover RatioA measure of the utilization of a company's fixed assets to Inventory Turnover RatioProvides a measure of how often a company's inventory is sold or Market to Book RatioMeasure of the book value of a company on a per share basis. It is 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 Total Assets RatioA measure of the percentage return earned on the value of the Total Asset Turnover RatioA measure of the utilization of all of a company's 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 book rate of returnAccounting income divided by book value. market value addedMarket value of equity minus book value. net worthbook value of common stockholdersâ€™ equity plus preferred stock. Impairment LossA special, nonrecurring charge taken to write down an asset with an overstated 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. NPV (net present value of cash flows)Same as PV, but usually includes a subtraction for an initial cash outlay. 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 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-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 Cash-surrender valueAn amount the insurance company will pay if the policyholder ends a whole life Conversion valueAlso called parity value, the value of a convertible security if it is converted immediately. 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. 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 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. 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 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 Matched bookA bank runs a matched book when the distribution of maturities of its assets and liabilities are equal. Maturity valueRelated: par value. 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 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. Open bookSee: unmatched book. Original face valueThe principal amount of the mortgage as of its issue date. 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 Present valueThe amount of cash today that is equivalent in value to a payment, or to a stream of payments, Present value factorFactor used to calculate an estimate of the present value of an amount to be received in Present value of growth opportunities (NPV)Net present value of investments the firm is expected to make Price value of a basis point (PVBP)Also called the dollar value of a basis point, a measure of the change in Relative valueThe attractiveness measured in terms of risk, liquidity, and return of one instrument relative to Replacement valueCurrent cost of replacing the firm's assets. Residual valueUsually refers to the value of a lessor's property at the time the lease expires. Salvage valueScrap value of plant and equipment. Short bookSee: unmatched book. Standardized valueAlso called the normal deviate, the distance of one data point from the mean, divided by Stockholder's booksSet of books kept by firm management for its annual report that follows Financial Straight valueAlso called investment value, the value of a convertible security without the con-version option. Tax booksSet of books kept by a firm's management for the IRS that follows IRS rules. The stockholder's Terminal valueThe value of a bond at maturity, typically its par value, or the value of an asset (or an entire Time value of an optionThe portion of an option's premium that is based on the amount of time remaining Time value of moneyThe idea that a dollar today is worth more than a dollar in the future, because the dollar
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