Book Value

Parent term
Book Value is an accounting measures of the equity of a business/asset after subtracting a companies liabilities from assets.

Calculating Book Value for A Single Asset
  • Subtract depreciation, amortization and/or impairment costs from the original cost of the asset

Calculating Book Value for an Entire Company

Tangible Book Value
  • Sometime book value may include goodwill and/or intangible assets, sometimes it doesn't
  • When intangible assets and goodwill are explicitly excluded, the metric can be defined as "Tangible Book Value