Book value: related pages
NAV The total value of a company’s assets less the total value of its liabilities, divided by the number of shares in issue.
Price/book value Share price ÷ net assets per share.
Accounting rate of return (ARR) Average operating profit ÷ average book value of assets, as a percentage.
Going concern principle The assumption for the purposes of accounting or valuation, or the fact in the case of a sale, that a business will continue to operate.
Fair value The value of an asset or liability in an arms length transaction between unrelated willing and knowledgeable parties. A concept used in many accounting standards including the IFRSs.
Historical cost An asset value based on the actual purchase cost, or the accounting principle that requires this.
Copyright Graeme Pietersz © 2005-2019
