$$Talk

Today’s $$ ‘Word’: Book Value.

Book value: The value of a company based on the numbers on the “books.” It’s the estimated worth of a company if the business were shut down, and everything sold. Book value is the opposite of “market value,” where companies feel more valuable than their books would suggest. Buzzy tech companies like Apple experience a higher market value than what the underlying business is doing. The concept is analogous to valuing your car by Kelly Blue Book. There’s a value basic on stats of age and mileage. But if, for some reason, Brad Pitt was seen in your car, the value of what you could get for the car would go way up.

By | 2017-01-23T08:55:13+00:00 August 4th, 2014|Word of the Week|0 Comments