Net Book Value Calculator
Accumulated depreciation per year depreciation x total number of years.
Net book value calculator. There are several variants on book value but all of them encompass the value of a company s real estate equipment inventory cash on hand and accounts receivable as well as the size of the company s accounts payable debt and taxes due. Ford fiesta 1 4 trend 5 door book value volkswagen polo 1 4 comfortline book value ford bantam 1 3i book value volkswagen polo 1 6 comfortline book value opel corsa utility 1 7 dti book value nissan np200 1 6 s 16v book value. The price to book ratio formula sometimes referred to as the market to book ratio is used to compare a company s net assets available to common shareholders relative to the sale price of its stock.
Note that the book value of the asset can never dip below the salvage value even if the calculated expense that year is large enough to put it below this value. The formula used to calculate the net book value of the assets is as below. Over time some items are worth less than they were when purchased.
The formula for price to book value is the stock price per share divided by the book value per share. See present value cash flows calculator for related formulas and calculations. The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity.
There are various equations for calculating book value. Net book value is a measure of how much an asset is worth. Calculate the net present value npv of a series of future cash flows more specifically you can calculate the present value of uneven cash flows or even cash flows.
Interest rate discount rate per period. When a company makes a purchase the purchase price is known as the item s book value. To arrive at the book value simply subtract the depreciation to date from the cost.
It shows the current position of the asset base after liabilities are taken into account. Book value is the value of a company s assets minus its liabilities. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders.