book value

noun

Definition of book value

: 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

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 on the Web Trading at one of the steepest discounts to book value among its peers, Citigroup has huge potential for a sharp turnaround. Telis Demos, WSJ, "Citigroup Gives Wall Street a Sobering Message," 15 Sep. 2020 In the industrial era, investors sought out companies trading for less than their book value—the assets on its balance sheet minus debt and other liabilities. Greg Ip, WSJ, "Pandemic Hastens Shift to Asset-Light Economy," 7 Oct. 2020 Piling all that extra cash on its balance sheet would also have raised its book value, and hence its valuation by a not inconsiderable almost 7%. Shawn Tully, Fortune, "By this measure, Snowflake’s IPO wasn’t such a a success after all," 17 Sep. 2020 Carver, for example, trades at nearly 9 times book value, a valuation measure based on a bank’s net worth. Amber Burton, WSJ, "Big Gains in Black-Owned Businesses From Juneteenth Investments Prove Fleeting," 3 Sep. 2020 Shares of the biggest banks are trading at about 0.45 times their forecast book value, a record low valuation, after underperforming the benchmark indexes in Hong Kong and on the mainland for most of the past five years. Bloomberg.com, "China’s Mega Banks Post Worst Profit Slump on Bad Debt Wave," 29 Aug. 2020 Many auto refinancing lenders offer lease buyouts; some will lend amounts greater than the car’s book value. cleveland, "4 ways to end your car lease early," 29 Aug. 2020 Value investing is buying stocks that are trading at low valuations relative to earnings, book value and sales. Adam Shell, USA TODAY, "These ignored stocks may be poised to rebound," 14 July 2020 True value is a low price relative to some financial measure of intrinsic worth—recent profits, say, or the book value of assets. The Economist, "Buttonwood What if the dotcom boom and bust hadn’t happened?," 27 June 2020

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.

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First Known Use of book value

1839, in the meaning defined above

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Time Traveler for book value

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The first known use of book value was in 1839

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Statistics for book value

Last Updated

3 Nov 2020

Cite this Entry

“Book value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/book%20value. Accessed 2 Dec. 2020.

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More Definitions for book value

book value

noun

English Language Learners Definition of book value

finance : the amount of money that something (such as a car) is officially worth based on its age, style, condition, etc.

book value

noun

Legal Definition of book value

: 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

Comments on book value

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