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what is book value formula in finance. It can also be greater than less than or equal to zero. It can be greater than less than or equal to zero.
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This figure represents the minimum value of a companys. Net book value NBV refers to the historical value of a companys assets or how the assets are recorded by the accountant. Net Book Value of a Company.
NBV is calculated using the assets original cost how much it cost to acquire the asset with the depreciation depletion or amortization of the asset being subtracted from the assets original cost.
We used the average number of shares outstanding because the closing period amount may skew results if there was a stock issuance or major stock buyouts. The formula for calculating the book value per share is given as follows. The net book value of a company shows the total book value of all its assets and liabilities. The term book value is a companys assets minus its liabilities and is sometimes referred to as stockholders equity owners equity shareholders equity or simply equity.
