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Everything about Book value

Value of an asset according to its balance sheet account balance

In accounting, book value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset. Traditionally, a company's book value is its total assets minus intangible assets and liabilities. However, in practice, depending on the source of the calculation, book value may variably include goodwill, intangible assets, or both. The value inherent in its workforce, part of the intellectual capital of a company, is always ignored. When intangible assets and goodwill are explicitly excluded, the metric is often specified to be tangible book value. Wikipedia →

🧭 Start here: a 6-step reading path

  1. Read the overview: Book valueA 5-minute orientation
  2. Skim a recent paper: Book-tax differences, dividend payout, and firm valueInfluential work since 2022
  3. Pick up a classic book: Captains CourageousThe most-reprinted book on the subject
  4. Read the landmark paper: Earnings, Book Values, and Dividends in Equity Valuation*Cited 3,729 times
  5. Go sideways: AssetA closely related topic
  6. Go sideways: Valuation (finance)A closely related topic

📖 Definitions

Noun The value of an asset as reflected on an entity's accounting books, without accounting for appreciation or depreciation.

Noun The price for which an item or service should be bought or sold, usually as related in a printed collection of prices for similar items or services.

🗂️ The subject at a glance

  1. Asset book value
  2. Net asset value
  3. Corporate book value
  4. Tangible common equity
  5. Stock pricing book value

🏆 Landmark papers (most cited)

🆕 Influential since 2022

📚 Books worth reading

Ranked by number of editions on Open Library, a rough measure of how lasting a book is.

🔗 Related topics