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https://boards.fool.com/book-value-is-the-accountants-value-of-the-22996692.aspx
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| Subject: Re: book value | Date: 9/7/2005 12:18 PM | |
| Author: DoughBaker | Number: 7595 of 13206 | |
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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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