Connect With Us
Register
Login
Book value definition
Book value is the net value of a company or an asset as recorded in the accounts. For a company, it is total assets minus total liabilities, the figure that would in theory remain for shareholders once debts were settled.
Book value appears on the balance sheet and is the basis for shareholders' equity. It is built from historical cost and accounting adjustments rather than current prices, so it records what was paid and written down over time, not what the market would pay today.
Book value sits between two related figures. Market value is the price the market currently puts on the company or asset, which can run well above or below book value for a brand-heavy or fast-growing business. Intrinsic value is an analyst's estimate of what the company is truly worth, based on expected future earnings. Investors compare all three before they judge whether a price is cheap or expensive.
Book value Example
A company holds USD 1 million in total assets and USD 400,000 in total liabilities.
Book value is assets minus liabilities:
USD 1,000,000 - USD 400,000 = USD 600,000
The company has a book value of USD 600,000.
Get Started!
Sign up and access the Global Markets in less than 3 minutes
The information provided on this website is of a general nature only and does not constitute personal financial advice. Before acting on any information on this website, you should consider the suitability of the information in relation to your objectives, financial situation and needs. Investing in CFDs and FX Margin Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You do not own, or have, any interest in the underlying asset. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. It is important that you read and consider the disclosure document before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use would be contrary to local laws and regulations. The Products and Services offered on this website are not intended for residents of the United States, Malaysia and Thailand.
TMGM is authorized and regulated in various jurisdictions.
Trademax Australia Limited, trading as TMGM, is regulated by the Australian Securities and Investments Commission (ASIC), AFSL no. 436416 and is located at Level 28, One International Tower, 100 Barangaroo Avenue, 2000 Sydney, NSW Australia.
Email: support@tmgm.com.au
Trademax Global Limited, trading as TMGM, is authorized and regulated by the Vanuatu Financial Services Commission (VFSC), registration number 40356 and registered at 1276, Kumul Highway, Port Vila, Vanuatu, Republic of Vanuatu.
Email: support@tmgm.com
Trademax Global Markets (SE) Limited, trading as TMGM, is authorized and regulated by the Financial Services Authority (FSA) of Seychelles, with license number SD224. The company is registered at Office No 13, Providence Estate ABIS Centre, Mahe, Seychelles.
Email: support@tmgm.com
Trademax Global Markets (International) Pty Ltd, trading as TMGM, is authorized and regulated by the Financial Services Commission, Mauritius (FSC) with license no. GB22201012, and registered at 33, Edith Cavell Street C/o IQ EQ Fund Services (Mauritius) Ltd Port Louis, 11324 Mauritius.
Email: support@tmgm.com
Copyright © TMGM. All rights reserved