Book Value

• Book Value

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Equity (finance) - Book value

1 The book value of equity will change in

the case of the following events:


Book value

1 ISBN 1-55623-035-4 However, in practice, depending on the source of the calculation, book value may variably include Goodwill (accounting)|goodwill, intangible assets, or both.Graham and Dodd's Security Analysis, Fifth Edition, pp 318 - 319 When intangible assets and goodwill are

explicitly excluded, the metric is often specified to be tangible book

value.[http://www.investopedia.com/terms/t/TBVPS.asp#axzz1hBac0bcg Investopedia.com Tangible Book Value Per Share - TBVPS] retrieved 21 Dec

2011


Book value

1 In the United Kingdom, the term net asset value may refer to the book value of a

company.


Book value - Asset book value

1 An asset's initial book value is its actual cash value or its acquisition cost


Book value - Depreciable, amortizable and depletable assets

1 Monthly or annual depreciation, amortization (business)|amortization and depletion (accounting)|depletion are used to reduce the book value of

assets over time as they are consumed or used up in the process

of obtaining revenue.Meigs and Meigs, Financial Accounting 4th ed


Book value - Depreciable, amortizable and depletable assets

1 After the bonds are sold, the book value of Bonds Payable is increased or decreased to reflect the actual

amount received in payment for the bonds


Book value - Net asset value

1 In the United Kingdom, the term net asset value may refer to book value.[http://www.investopedia.com/terms/

b/bookvalue.asp Book Value]


Book value - Corporate book value

1 A company or corporation's book value, as an asset held by a separate economic entity, is the company or corporation's shareholders' equity,

the acquisition cost of the shares, or the market value of the shares

owned by the separate economic entity.


Book value - Corporate book value

1 A corporation's book value is used in fundamental financial analysis to help

determine whether the market value of corporate shares is above or below the book

value of corporate shares. Neither market value nor book value is an unbiased estimate

of a corporation's value. The corporation's bookkeeping or accounting records do not

generally reflect the market value of assets and liabilities, and the market or trade value of the corporation's stock is subject to variations.


Book value - Tangible Common Equity

1 Federal Government in the valuation of troubled banks.[http://online.wsj.com/article/SB123535148618845005.html Wall Street Journal 2/23/09, US Eyes Large Stake in Citi][http://www.nytimes.com/2009/02/25/business/economy/25bank.html?_r=2 New York Times 2/24/09, Stress

Test for Banks Exposes Rift on Wall St.] Tangible common equity is calculated as total book value minus intangible assets, goodwill (accounting)|goodwill, and

Preferred stock|preferred equity, and can thus be considered the most conservative valuation of a

company and the best approximation of its value should it be forced to liquidate.wikinvest:Tangible Common Equity (TCE)|Tangible Common Equity via Wikinvest


Book value - Tangible Common Equity

1 Since tangible common equity subtracts preferred equity from the tangible book value, it does a better job estimating what the value of the company is to holders of specifically common stock compared to standard

calculations of book value.


Book value - Stock pricing book value

1 To clearly distinguish the market value|market price of shares from the

core ownership equity or shareholders' equity, the term 'book value' is often used since it focuses on the values that have been added

and subtracted in the accounting books of a business (assets -

liabilities)


Book value - Uses

1 Paying only a price/book = 1 means the investor will get all his

investment back, assuming assets can be resold at their book value


Book value - Uses

1 #Book value per share can be used to generate a measure of comprehensive earnings, when the opening and closing

values are reconciled. BookValuePerShare, beginning of year - Dividends +

ShareIssuePremium + Comprehensive EPS = BookValuePerShare, end of

year.http://www.retailinvestor.org/earnings.html Use Book Value To Calculate

Comprehensive EPS


Book value - Changes are caused by

1 #The sale of shares/units by the business increases the total book value. Book/sh will increase if the additional shares are issued at a price higher than the pre-existing

book/sh.



1 #The purchase of its own shares by the business will decrease total book value. Book/shares will decrease if

more is paid for them than was received when originally issued (pre-

existing book/sh).



1 #Dividends paid out will decrease book value and book/sh.



1 #Comprehensive earnings/losses will increase/decrease book value and

book/sh. Comprehensive earnings, in this case, includes net income from

the Income Statement, foreign exchange translation changes to Balance Sheet items, accounting

changes applied retroactively, and the opportunity cost of options

exercised.https://store.theartofservice.com/the-book-value-toolkit.html

Book value - Net book value of long term assets

1 Book value is often used interchangeably with net book value

or carrying value, which is the original acquisition cost less

accumulated depreciation, depletion or amortization. Book value is the term which means the value of the

firm as per the books of the company. It is the value at which the

assets are valued in the balance sheet of the company as on the

given date.


P/B ratio - Total book value vs tangible book value

1 Technically, P/B can be calculated either including or excluding

intangible assets and goodwill.Graham and Dodd's Security Analysis, Fifth Edition, pp 318 - 319 When intangible assets and goodwill

are excluded, the ratio is often specified to be price to tangible book

value or price to tangible book.


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Book Value