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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 definition in simple words. The official or expected value of a company or product as calculated in accounts or stated in information about prices. Book value is calculated by subtracting any accumulated depreciation from an asset s purchase price or historical cost. Synonyms and related words.
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. Book value or carrying value is the net worth of an asset that is recorded on the balance sheet. The value of an asset equal to cost minus depreciation.
Definition of book value. What is book value.
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