The value of a security or asset as entered in a firm’s books. Often contrasted with market value.
- By comparing the company's market value to its book value, investors can in part determine whether a stock is under or over-priced.
- Or a fixed formula can be used - for example, the book value or fair market value of the shares.
- As in previous research, firm size is measured as the book value of a firm's total assets.
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