book value

noun

: the value of something as shown on bookkeeping records as distinguished from market value:

a

: the value of an asset equal to cost minus depreciation

b

: the value of a corporation's stock equal to its book value minus its liabilities

Example Sentences

I paid $4,100 for the car four years ago, but its book value is now under $500.

Recent Examples on the Web

Bank of America trades at 0.9 times its book value, according to FactSet, down from 1.3 times a year ago. —Wsj Staff, WSJ, 30 Mar. 2023

In the Wedbush note, Chiaverini and Brian Violino indicated that First Republic’s tangible book value would be negative $73 per share at the end of last year if its holdings were valued at current market prices. —Max Reyes, BostonGlobe.com, 22 Mar. 2023

That price is a fraction of the smaller bank's book value, but was deemed necessary to stave off a global banking crisis that could have resulted from Credit Suisse's collapse. —Wsj Staff, WSJ, 20 Mar. 2023

The sale values the Kunlun Energy assets at a 90% premium to book value, Morgan Stanley analysts wrote in an emailed note, while Daiwa Capital Markets pegged the premium at 97%. —Bloomberg.com, 22 Dec. 2020

Silvergate’s price/book value, the ratio of its share price to its net worth, has been trading below one since early November, when the FTX liquidity crisis spilled into public view. —Gunjan Banerji, WSJ, 6 Dec. 2022

McDonald’s price-to-economic book value (PEBV) ratio of 1.3 means the stock is priced for profits to grow 30% from current levels. —David Trainer, Forbes, 18 May 2022

The drop in British pound also adds to the attractiveness of the bank that trades at just 0.56 times its book value. —Dinesh Nair, Bloomberg.com, 9 Feb. 2023

This favorite of the famous Omaha value investors trades at 1.96 times book value with a price-earnings ratio of 15 and a forward p/e of 11. —John Navin, Forbes, 8 Oct. 2022

See More

Word History

First Known Use

1839, in the meaning defined above

Legal Definition

book value

noun

: the value of something as shown on bookkeeping records as distinguished from market value: as

a

: the value of an asset equal to cost less depreciation

b

: the value of a corporation's capital stock expressed as its original cost less depreciation and liabilities