The term
"book value" refers to the value of a company or an asset based on its financial records, such as the balance sheet. It is the net worth of the asset or company if all its liabilities or debts were paid off. So, it gives an estimate of how much the asset or company is worth on paper, but it may not reflect its true market value.
Full definition
What about you, have you experienced a double digit drop in
book value of your portfolio in a very short time period?
All measures like the growth in tangible
book value per share become considerably more complicated to evaluate when a company grows via a series of mergers.
And, if I can be so radical, we begin ignoring earnings and focus on growth
tangible book value per share.
This is why I pay attention to growth
in book value per share, ex accumulated other comprehensive income, plus dividends, rather than earnings.
While the initial value of the car plays a role in determining your premium rate, when you are reimbursed you only receive the
blue book value of the car.
The value side is rounded out by four smaller banks, which all posted returns north of 30 % over the last year and trade
at book value multiples of 1.5 or less.
Specifically, I pointed out that the company was trading
below book value for the only time in at least a decade.
Its stock trades at 1.3
times book value after posting a total return of 46 % over the last 12 months.
Each company that provides blue
book values for motorcycles has their own methodology for doing so.
Traditional approaches to valuation based
on book values and P / E ratios are akin to painting by numbers.
If current low rate environment is to continue far into the future, what sort of
book value growth do you expect?
The good news is that
with book values steadily increasing at rates around ~ 10 %, investors in any bank should be rewarded over the long - term.
I think of the economic
book value as the no - growth value of the business or the value of the business if existing profits stay flat forever.
This is hardly the sort of earnings power which should command any premium
over book value at all.
Beyond that, he explains how to calculate net asset values, as distinct
from book values.
When a business buys additional productive assets using debt financing, the
net book value does not increase.
If not, you'll likely do fine over time owning great quality companies with a history of
increasing book values and dividends.
Potential downside risk protection makes low price - to -
book value stocks attractive.
Above the 1.3
x book value hurdle, it would be better to do special dividends.
Most REITs won't trade
above book value because investors know the value of the portfolio is constantly adjusted.
Just because a financial institution trades below
book value does not mean that it is cheap.
The premium, as so measured paid over an
adjusted book value of the net assets acquired, is deemed to be purchase goodwill.
Some investors also
use book value as the starting point of an investment strategy altogether.
If an industry is trending upward and you can find performing stocks
under book value you can stand to make a good chunk of cash.
A small or
low book value from too much debt, for example, means that the companies profits will be limited even if it does lots of business.
That said, well - run insurance companies pay great dividends and
compound book value at high rates.
In this case, insurers will «total» the car and pay you what the car was worth based on its
current book value rather than fixing it.
And yet I allowed myself to look at things like
book value when considering the stock.
And yet I allowed myself to look at things
like book value when considering the stock.
So I prefer focusing on low price to book stocks, even with all the problems and contradictions inherent in
stated book value.
However, realize that stock prices factor in future earnings,
while book value just looks at current assets.
The blue
book value shows what a buyer would generally pay for a car on the open market.
You can gain some insight into the differences
between book value and intrinsic value by looking at one form of investment, a college education.
Most articles I read just seem to gloss over these details and talk about net worth and on - the -
books values which, to me, don't actually pay the bills!
A small price difference of 0.5 % or less of the
total booking value due to currency conversions is not eligible for our Best Rate Guarantee claim.
You can borrow up to half the
black book value of your car depending on your ability to pay, and they may ask for additional information to approve larger loans.
That is what a combination of the 6 - month price index with the lowest price - to -
book value companies returned.
Share prices of companies regularly
exceed book value when investors believe that there is some intrinsic value that is worth much more than the company currently is.
Phrases with «book value»