book value
"Book value" is a key metric in accounting and finance, reflecting the recorded value of assets or companies on financial statements.
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Definition
C1Accounting
(technical, formal)The value of an asset as recorded on a company's balance sheet, calculated as its original cost minus accumulated depreciation or amortization.
Example
- The book value of the machinery is $10,000 after accounting for depreciation.
C1Finance
(technical, formal)The net value of a company, determined by subtracting its total liabilities from its total assets.
Example
- Investors often compare a company's book value to its market value to assess if the stock is undervalued.
Similar
Terms that have similar or relatively close meanings to "book value":