Net Book Value Calculator

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Net book value calculator. It shows the current position of the asset base after liabilities are taken into account. Net book value formula original purchase cost accumulated depreciation original purchase cost here means the purchase price of the asset paid at the time when the company purchased the assets. 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.

Book value is the value of a company s assets minus its liabilities. See present value cash flows calculator for related formulas and calculations. Net book value original asset cost accumulated depreciation.

When a company makes a purchase the purchase price is known as the item s book value. In the example above the asset s book value after 6 years would be 10 000 6000 or 4000. 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. The formula for price to book value is the stock price per share divided by the book value per share. 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.

Over time some items are worth less than they were when purchased. The formula for calculating nbv is as follows. 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.

The first equation deducts accumulated depreciation from the total assets to get the book value amount. To arrive at the book value simply subtract the depreciation to date from the cost. There are various equations for calculating book value.