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
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
With a market capitalization of $601 million, the stock trades with a forward price-earnings ratio of 7.52 and at 53% of its book value.
—
John Navin, Forbes, 29 Mar. 2024
The stock trades with a price-earnings ratio of 6.35 and at 1.17 times its book value.
—John Navin, Forbes, 28 Mar. 2024
Price-to-Book Ratio A company’s book value measures the net worth of the firm’s assets—net shareholder’s equity—and is equal to total assets less liabilities.
—Charles Rotblut, Forbes, 29 Feb. 2024
In addition, there are key factors that have nothing to do with dividends, such as a stock’s valuation ratios (stock price compared to earnings, book value, or revenue per share) and the company’s profitability.
—John Dorfman, Forbes, 21 Feb. 2024
Lee noted that small-cap stocks are a particularly good buy relative to the value of the assets on their balance sheets, called book value.
—Will Daniel, Fortune, 15 Dec. 2023
Disney is selling at 22 times earnings and 5 times book value.
—Matt Schifrin, Forbes, 29 Nov. 2023
By contrast, value stocks that are below average in PEs and book value, and hence the cheap choices, should provide returns twice as high at 7.3%, since their dividend yields are much richer and their multiples more modest.
—Shawn Tully, Fortune, 16 Nov. 2023
The company is also contending with share price issues, with its stock continuing to sell at less than half its tangible book value.
—Chloe Taylor, Fortune, 7 Nov. 2023
John Navin, Forbes, 29 Mar. 2024
The stock trades with a price-earnings ratio of 6.35 and at 1.17 times its book value.
—John Navin, Forbes, 28 Mar. 2024
Price-to-Book Ratio A company’s book value measures the net worth of the firm’s assets—net shareholder’s equity—and is equal to total assets less liabilities.
—Charles Rotblut, Forbes, 29 Feb. 2024
In addition, there are key factors that have nothing to do with dividends, such as a stock’s valuation ratios (stock price compared to earnings, book value, or revenue per share) and the company’s profitability.
—John Dorfman, Forbes, 21 Feb. 2024
Lee noted that small-cap stocks are a particularly good buy relative to the value of the assets on their balance sheets, called book value.
—Will Daniel, Fortune, 15 Dec. 2023
Disney is selling at 22 times earnings and 5 times book value.
—Matt Schifrin, Forbes, 29 Nov. 2023
By contrast, value stocks that are below average in PEs and book value, and hence the cheap choices, should provide returns twice as high at 7.3%, since their dividend yields are much richer and their multiples more modest.
—Shawn Tully, Fortune, 16 Nov. 2023
The company is also contending with share price issues, with its stock continuing to sell at less than half its tangible book value.
—Chloe Taylor, Fortune, 7 Nov. 2023
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'book value.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
Word History
First Known Use
1839, in the meaning defined above
Dictionary Entries Near book value
Cite this Entry
“Book value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/book%20value. Accessed 19 Apr. 2024.
Copy Citation
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
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