Define: Book Value

UK Accounting Glossary

Definition: Book Value


Quick Summary of Book Value


The book value of an asset or group of assets is the price at which they were originally acquired, in many cases equal to purchase price.



What is the dictionary definition of Book Value?

Dictionary Definition


The value of a security or asset as entered in a firm’s books.


Full Definition of Book Value


The book value of an asset or group of assets is the price at which they were originally acquired, in many cases equal to purchase price. Book value is therefore relevant in-so-far as it forms the basis of various calculations.

e.g. of nominal capital gains (current value divided by book value), of amortised value (book value adjusted for depreciation) and of several financial ratios (e.g. price to book value [P/BV]).



Examples of Book Value in a sentence


Liabilities are recorded at book value so that the book value of net worth is zero.

The insured value of the sports car was greater than its book value.

Stocks are selling at more than three times their book value.

An organisations capitalised value may be greater or less than its book value.

According to the MSCI, World financials currently trade at 1.2 times x book value.

We have to assume that the owners of those enterprises acquired them at book value.



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Book Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 17, 2019 https://payrollheaven.com/define/book-value/.
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Book Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/book-value/ (accessed: July 17, 2019).
American Psychological Association (APA):
Book Value. PayrollHeaven.com. Retrieved July 17, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/book-value/

Definition Sources


Definitions for Book Value are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th December 2018.