book value

Definition from Nolo’s Plain-English Law Dictionary

A method of valuing a corporation's stock or a company's worth by adding up the stated value of assets as shown on the books (records) of the company and deducting all the liabilities (debts) of the company. Because it does not include factors such as earnings potential or the goodwill (reputation) of the company, book value is a conservative method of valuation.

Definition provided by Nolo’s Plain-English Law Dictionary.