Talk:Book value

Obtusity

The problem with this article is that it doesn't seem to get to the point. The fact that book value is nowhere defined within the article and needs to be asked about on the talk page is a symptom. Define book value in a practical manner. How do you calculate if you have a balance sheet in front of you? Simple stuff. 83.84.100.133 (talk) 18:33, 1 April 2018 (UTC)

Calculation

how the book value is calculated?

Book per share = Shareholder d by # shares outstanding at period end. Diluted book per share = Equity plus proceeds of deemed exercise of warrants, option, etc. divided by # shares outstanding plus # new shares resulting from exercise of warrants, options, etc.Retail Investor 19:13, 19 October 2006 (UTC)

Jargon

uhm, a few examples would be nice. this article is kind of jargony

Merge carry value into book value

Neither of these articles has any significant references, and the terms are synonyms. I suggest merging the two articles into book value and concentrating on ensuring that the merged article is well-sourced. Comments and opinions? --Foggy Morning 01:56, 30 June 2007 (UTC)

Agree with the sourcing. Indifferent to merging them, but I think there is some value to having two shorter articles (with clear links/distinctions between them made) - readability is better. I'm not sure they are perfect synonyms: book value is definitely used to refer to carrying value (as per the current split in the article), but the obverse is not true - I have never seen carrying value used to refer to a firm's "book value" (aka net asset value, etc). (Is this a hyponym)? Hence there is a logic to keeping them separate and making the distinction clear in the book value article.

Put another way, a dictionary would definitely keep both definitions in book value, an encyclopedia may attempt to separate the articles as related but distinct concepts (whose terminology overlaps).--Gregalton 07:52, 30 June 2007 (UTC)

• Merge - same topic, different names but they are the same thing. PianoKeys 23:06, 30 June 2007 (UTC)

I've added some general accounting information to this article. Need some sources for some statements, so I've tagged them. I left the existing text alone, other than minor formatting, but put it under stock pricing. Have a couple of red-links I can't find in Wiki. All help greatly appreciated. --Foggy Morning 15:01, 1 July 2007 (UTC)

Are the terms really synonyms? I think book value is calculated using the per share market value of a traded security and multiplying by the number of shares, where intrinsic value refers to assets that are not publicly traded. This important distinction (if it is true) means that intrinsic value might be used to discuss a private company, or a company that is part of a larger publicly traded holding company like United Technologies (Otis, Carrier, and Sikorsky might have intrinsic values unreflected in current book value of UTI). Krookey (talk) 17:09, 7 January 2008 (UTC)

• Definitely Merge
  

• I disagree with Krookey. Firstly, according to your definition, book value of equity is equal to market value of equity. Also, you didn't define intrinsic value. Are you saying that the carrying value of an unlisted share is the same as its intrinsic value? For statements like these you better have good references.
• Book value mentions carrying value as a synonym (rightfully IMHO) and even links to the article!
• Generally assets are carried on the balance sheet at their carrying value (which is the undepreciated part of their historical cost) aka book value.
• If you're talking equity then the terms are still used interchangeably (I have a 2008 CFA Institute text book to back this up (see next point)).
• Gregalton's argument was centered around the fact that he had never come across carrying value referring to net assets. Firstly, even if this is true, I think that it's far too frivolous a reason to warrant two articles. There may be a slight (read: insignificant) amount of truth there but here's a quote from the text book mentioned above:

Book value equity per share The amount of the book value (also called carrying value) of common equity per share of common stock, calculated by . . . .

• You didn't explain how two articles improves readability.
• All things considered, I agree that (practically speaking) the terms are not 100% percent equivalent but the difference is too small and inconsistent to warrant separate articles.

Zain Ebrahim (talk) 21:48, 25 April 2008 (UTC)

It's been months and no one said anything so I replaced Carry value with a redirect to this page. I didn't see anything useful in that article but you can use this diff to insert anything you think is valuable. Zain Ebrahim (talk) 21:10, 20 August 2008 (UTC)

Comprehensive Earnings: Opportunity Cost of options

As per the article, comprehensive earnings includes the opportunity cost of exercising options. I take it that this refers only to American options, i.e. is there an opportunity cost associated with the exercising of European options? Could I edit the article to say as much? Jive472 (talk) 19:51, 30 July 2009 (UTC)

Book value valuation

I'm confused. I take it book value = acquisition cost - depreciation & amortization. On the other hand, another person says that book value includes comprehensive earnings, in which case book value = initial investment - depreciation & amortization + comprehensive earnings. Yet a third person says total book value = shareholder's equity? Are these measures necessarily equivalent? Sounds like there is some ambiguity. Jive472 (talk) 19:51, 30 July 2009 (UTC)