Examples of book value in a Sentence
I paid $4,100 for the car four years ago, but its book value is now under $500.
Recent Examples of book value from the Web
The euphoria in equity markets worldwide has left the Sensex trading at 3.2 times book value, not cheap in absolute terms.
The simplest way to judge this is through book value.
Most of that cumulative loss was on paper, as Lands’ End wrote off half the book value of its brand name — the result of slumping performance under former CEO Federica Marchionni.
Deutsche Bank faces the same questions as Barclays over the future of its investment bank and trades at an even steeper discount to book value.
Over the past five years its book value has grown by a compound annual rate of 11%.
An article on Sunday about Warren Buffett’s annual letter to Berkshire Hathaway’s shareholders misstated the book value for Berkshire Hathaway in 2017.
Over the past 53 years, Berkshire’s per-share book value has skyrocketed from $19 to $211,750, with a rate of return of 19.1% compounded annually.
Or, a fund could ignore earnings entirely and look at the ratio of price-to-sales, dividends or book value, says CLS’s Vanneman.
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.
First Known Use of book value
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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