book value

Book value (also known as net asset value) is a way of measuring a business’s value or worth (valuation) using its tangible assets by taking the value of a business’s material assets minus its liabilities . Since book value does not include intangible assets, such as goodwill , the resulting book value is often less than the fair value or real value of a business.

Under general accounting principles, “book value” has a standard definition, namely a company’s assets over its liabilities.