Book value is an assets original cost less any accumulated depreciation and impairment charges that have been subsequently incurred. Book value is the carrying value of an asset which is its original cost minus depreciation amortization or impairment costs. The figure is used for tax purposes rather than for determining how much someone could charge for the sale of an item.
Book value per share is a fairly conservative way to measure a stocks value.
The book value literally means the value of a business according to its books or accounts as reflected on its financial statements. For example a building that was purchased for 900000 but that has depreciated 200000 has a book value of 700000. For assets the value is based on the original cost of the asset less any depreciation amortization or impairment costs made against the asset. Definition of Book Value In accounting book value refers to the amounts contained in the companys general ledger accounts or books.