Book value: Difference between revisions
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'''Book value''', similar to the concept of [[net worth]], is the value of all of the assets of a corporation. The term is used in [[financial management|finance]], especially as a way to gauge the financial health of a company. Stocks may trade at very different ratios of book value to share price. For example, in an asset intensive sector such as automobile manufacturing, the ratio would be very high, whereas a consulting firm would have a very low ratio. | '''Book value''', similar to the concept of [[net worth]], is the value of all of the assets of a corporation. The term is used in [[financial management|finance]], especially as a way to gauge the financial health of a company. Stocks may trade at very different ratios of book value to share price. For example, in an asset intensive sector such as automobile manufacturing, the ratio would be very high, whereas a consulting firm would have a very low ratio. | ||
Revision as of 15:39, 11 March 2008
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Book value, similar to the concept of net worth, is the value of all of the assets of a corporation. The term is used in finance, especially as a way to gauge the financial health of a company. Stocks may trade at very different ratios of book value to share price. For example, in an asset intensive sector such as automobile manufacturing, the ratio would be very high, whereas a consulting firm would have a very low ratio.