BOOK VALUE

a company's common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets such as goodwill. Also, the value of an asset as it appears on a balance sheet, equal to cost minus accumulated depreciation. Book value often differs substantially from market value; a company will have many assets which do not appear in the balance sheet, eg., patents, also reputation, management ability, available technology etc. Unrecorded liabilities include law suits, inferior managment.