Book Value Yield Definition

Book value appeals more to value investors who look at the relationship to the stock s price by using the price to book ratio.

Book value yield definition. Book yield in the handbook of international financial terms. Yield refers to the earnings generated and realized on an investment over a particular period of time. Book value is the net value of a firm s assets found on its balance sheet and it is roughly equal to the total amount all shareholders would get if they liquidated the company.

Book value is equal to the cost of carrying an asset on a company s balance sheet and firms calculate it netting the asset against its accumulated depreciation. Book value is also the tangible net asset value of a company calculated as total assets minus intangible assets e g. As a result book value can also be.

The yield to maturity ytm book yield or redemption yield of a bond or other fixed interest security such as gilts is the theoretical internal rate of return irr overall interest rate earned by an investor who buys the bond today at the market price assuming that the bond is held until maturity and that all coupon and principal payments are made on schedule. For assets the value is based on the original cost of the asset less any depreciation amortization or impairment costs made against the asset. Where the yield of a security is computed using its book value rather than its market value.

Social sciences economics. For the initial outlay of an investment. It is defined as the bond s internal rate of return.

It s expressed as a percentage based on the invested amount current market value or face. Market value is the. The market value per share represents the current price of a company s shares and it is the price that investors are willing to pay for common stocks.

If you want to compare companies you can convert to book value per share which is simply the book value divided by the number of outstanding shares. Patents goodwill and liabilities. The book value per share and the market value per share are some of the tools used to evaluate the value of a company s stocks.