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Finance Dictionary and Glossary of Investment Terms
A company's total assets minus intangible assets and liabilities, such as debt. A company's book value might be higher or lower than its market value.
1. The value at which an asset is carried on a balance sheet. In other words, the cost of an asset minus accumulated depreciation.2. The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.
This is the net worth of a company, the amount by which assets exceed liabilities. It''s also known as ""shareholder''s equity."" Most companies are worth far more than their book value, since ""worth"" means what someone is willing to pay, and hardly any good companies can be acquired for this baseline price. Book value is of particular interest to value investors.