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URL:  https://boards.fool.com/book-value-is-the-accountants-value-of-the-22996692.aspx

Subject:  Re: book value Date:  9/7/2005  12:18 PM
Author:  DoughBaker Number:  7595 of 13206

Book value is the accountant's value of the company. I don't know of an quick resource, but it is one of the fastest calculations you can do.

((Sum of all Assets) - (Sum of all Liabilities))/(# of shares)

For Google on June 30, 2005...

As taken from http://finance.yahoo.com/q/bs?s=GOOG

(4,497,718 - 543,861)/(279,240)
= 3,953,857/279,240
= $14.16

So, if Google were liquidated, you could expect to receive $14.16 per share.

On one side, the book value can indicate if a company is overpriced. I don't think so. The book value of a dollar bill is less than $0.03, that being the actual value of the paper and ink. The book value of a one hundred dollar bill is the same $0.03. We know that good companies can be worth more than the true accounting value of the company.
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