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book value

book value

4 4.7
The value of an asset on a company's balance sheet equals its cost minus how much it loses in value
  • noun
  • /bʊk ˈvælju/
  • Specialized
translation icon : valor contable
  • The college endowment has a book value of $30,700,000 and a market value of $41,900,000.
  • book value per share
  • net book value
  • percent of book value

I mean, if you look at a cash flow jack-in-the-box, you have price to book value, price to earnings and then what's the overall growth over time, price to growth.

Examples

  • The company is trading for 1.16 times book value and has a forward PE of $9.03.

    Blog text (8)
  • If I paid for comprehensive, I reckon it would come to more than the book value of the car!

    Blog text (28)
  • Earlier studies differ regarding the market value or book value of terms used in the ratio.

    Academic text (2018)
  • Concepts of value include fair market value, investment value, and book value.

    Academic text (1991)
  • Oh, and the government will pay straight blue book value for any used car, up to $20k.

    Blog text (30)
  • Sprint is trading for 2 times book value and only 50% of sales.

    Blog text (8)
  • Note that assets are shown at book value and are much lower than they would be in a DCF analysis.

    Blog text (18)
  • Looking at a ten-year history on that metric, the company traded above book value from 2002 to 2007.

    Blog text (23)
  • Leucadia is paying less than book value for Jefferies.

    Blog text (21)
  • The college endowment has a book value of $30,700,000 and a market value of $41,900,000.

Antonyms

40 2.8

The price something sells for in a market with many buyers and sellers

How High

market value
40 2.8
book value
  • Specialized
4 4.7
physical value
  • Specialized
8.6

Surface Forms

book value singular
book values plural

Morphology

book + value

The meaning 'the value recorded in the company's books' is directly derivable from combining 'book' (here: the company's written financial records) with 'value' (worth). This noun-noun compound follows a clear compositional pattern found in many languages, so learners who know both constituents can infer the MWE's meaning.

Etymology

The noun book value may come from the simple idea of a company's book, a record where amounts are written, and the value shown there after you take away how much the item has lost over time. So, book value means the amount recorded in the company's records, not the price you would get if you sold the item.