Book Value Definition In Simple Words
The value of something as shown on bookkeeping records as distinguished from market value.
Book value definition in simple words. Book value or carrying value is the net worth of an asset that is recorded on the balance sheet. Book value is calculated by subtracting any accumulated depreciation from an asset s purchase price or historical cost. The value of an asset equal to cost minus depreciation.
The official or expected value of a company or product as calculated in accounts or stated in information about prices. Definition of book value. What is book value.
Book value is a widely used financial metric to determine a company s value and to ascertain whether its stock price is over or under appreciated. Synonyms and related words.