Examples of book value in a Sentence
I paid ,100 for the car four years ago, but its book value is now under 0.
Recent Examples of book value from the Web
Even if the stockmarket valued RBS as highly as the book value of its assets—which is true of few big European banks, and in Britain only of HSBC—the price would still be only £4.
With a book value of almost £42 billion, the international arm would be too much for rivals like Credit Suisse , or Deutsche Bank.
Who’s who guide to the ANC’s new leadership Mkhize’s report shows that the ANC owns about 40 properties, with a book value of 309 million rand.
Clark Atlanta University announced Thursday a $2 million scholarship and a gift of more than 114 rare books valued at approximately $127,000.
When Donaldson and Lufkin left the firm, Mr. Jenrette became chief executive and, after surviving a severe downturn in 1974, restored high profitability and sold DLJ to Equitable Life for $440 million, twice its book value, in 1985.
Since then the bank’s valuation has risen from 1.66 times tangible book value to 2.09 times.
The firm attributes 30% to 40% of its profits to the U.S., and trades at a bigger-than-average 75% discount to tangible book value.
With a dividend yield of 5.5%, the stock is trading 7% below book value; for most of the past decade this bluest of blue-chip REITs has traded at a premium to the value of its assets.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'book value.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of BOOK VALUE
What It Is
How It Works
Book value is calculated by taking a company's physical assets (including land, buildings, computers, etc.) and subtracting out intangible assets (such as patents) and liabilities -- including preferred stock, debt, and accounts payable. The value left after this calculation represents what the company is intrinsically worth.
Thus, book value is calculated:
Book value = total assets - intangible assets - liabilities
Why It Matters
Since book value represents the intrinsic net worth of a company, it is a helpful tool for investors wanting to determine if a company is underpriced or overpriced, which could indicate a potential time to buy or sell. For instance, value investors search for companies trading for prices at or below book value (indicating a price-to-book ratio of less than 1.0), which implies the shares are selling for less than the company's actual worth.
BOOK VALUE Defined for English Language Learners
Definition of book value for English Language Learners
finance : the amount of money that something (such as a car) is officially worth based on its age, style, condition, etc.
legal Definition of book value
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