Book Value

Book Value (BV) is the value of any asset as recorded on a balance sheet. When used in context of a company, it is total assets minus intangible assets minus liabilities although depending on who is doing the calculation, intangible assets may be included. This is one of the common metrics used for valuing companies, especially when used in conjunction with price to give the Price / BV multiple.

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Retained Earnings
• Fraud Triangle
• Accounts Receivable Turnover Ratio
• Marginal Cost Formula
• Nash Equilibrium