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

When a stock is trading at a single-digit P/E ratio and a discount to its peers — the price to tangible book value per share is about 26% cheaper than the average for the group — an upside earnings surprise can create an above-average move. —Michael Khouw, CNBC, 22 Jan. 2025

The oil and gas exploration company trades with a price-earnings ratio of 17.90 at 1.66 times its book value. —John Navin, Forbes, 20 Jan. 2025

Recouping more than Chilwell’s remaining book value, estimated by The Athletic to be £13.5million, looks more achievable. —Liam Twomey, The Athletic, 25 Aug. 2024

His book value is now negligible, meaning any prospective fee would represent pure profit. —James Horncastle, The Athletic, 10 Jan. 2025

Word History

First Known Use

1839, in the meaning defined above

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