Skip to main content
7 votes
Accepted

Value of mother-in-law cottage for purposes of will

You should value the unit at: The fair market value of the whole property in 1983 (or whenever 25 years ago was) minus what the eldest sibling paid for the whole property minus the expected value in ...
Rupert Morrish's user avatar
3 votes
Accepted

Book Value From Price/Book

Your math is correct, and gives you book value per share. So to get the total "book value" you need to multiply by the number of shares outstanding. Since FB has about 2.98B shares outstanding, that ...
D Stanley's user avatar
  • 136k
2 votes

Value of mother-in-law cottage for purposes of will

The cottage belongs to the owner of the main home. It was not left when they passed. The other assets are part of the estate and should be split via the will. If as you suggest, for some reason they ...
JTP - Apologise to Monica's user avatar
2 votes

What could cause a stock to trade below book value?

A company's book value is the worth of all their assets. A companies book value is the value that accountants place on their assets, minus the accountants estimates of their liabilities. The thing is ...
Peter Green's user avatar
  • 2,944
2 votes

If total assets less total liabilities is positive, how should negative shareholders' equity be interpreted?

Bankruptcy may be one reason, but you also see these balances in startups that are initially not profitable but have raised a lot of cash in equity and/or debt financing. The reason people invest in ...
D Stanley's user avatar
  • 136k
2 votes

Metal companies trading below book value

Price to book value (market cap/Book value) is actually a metric of: PE x ROE which is equal to : (price/earnings) x (earnings / equity) where equity = net book value (asset-libailbities) ...
Avaricious_vulture's user avatar
1 vote

Is the price-to-book ratio too arbitrary to be useful to investors?

The usefulness of price-to-book is extremely limited. If company A has assets of $100 million, and P/B of 3, it has market value of $300 million (assuming no debt). If now company B buys company A, ...
juhist's user avatar
  • 6,743
1 vote

Is the price-to-book ratio too arbitrary to be useful to investors?

You are exactly right: price-to-book has plenty of limitations - the ones you mentioned and many more. For example: consumer company builds brands by marketing which is cost and do not increase book ...
ePortfel's user avatar
  • 182
1 vote

If total assets less total liabilities is positive, how should negative shareholders' equity be interpreted?

With the help of the answers of Dave Harris and D Stanley, I think I may have worked out an answer to the original question. If this answer contains errors, anyone with the relevant expertise is ...
SapereAude's user avatar
1 vote

Value of mother-in-law cottage for purposes of will

If the cottage was built with permits, as you say, the property was re-assessed at the time it was built, presumably with a substantial increase in value attributable to the cottage. You can use that ...
Andrew Lazarus's user avatar
1 vote

If total assets less total liabilities is positive, how should negative shareholders' equity be interpreted?

You see this, primarily, with firms that have gone bankrupt sometime in the past and where preferred shares were created by the bankruptcy court in exchange for debt. It can also be created to avoid ...
Dave Harris's user avatar
  • 4,277
1 vote
Accepted

Are Book Value and Shareholder Equity and Equity the same?

Yes they are synonymous. Sometimes, "book value of equity" or just "book value" is used to distinguish it from the market value of equity, which is what a company's shares are ...
D Stanley's user avatar
  • 136k
1 vote
Accepted

Is a company's book value included in its intrinsic value?

The intrinsic value takes into account revenue-generating book value Consider an airliner. It has multiple airplanes. If those are generating revenue (and hopefully profit), when discounting the ...
juhist's user avatar
  • 6,743
1 vote
Accepted

If book value > market value, will stock price increase if a liquidation is announced?

In theory, yes. But in practice, no. Book value is calculated using historical costs of assets, and estimated depreciation. This may or may not match up with the value you'll actually get during ...
RvPr's user avatar
  • 156
1 vote

Correct calculation for determining real business book value per share?

So, their book value is $648,323,000 (correct?). Correct. If Netflix were to (hypothetically) go bankrupt immediately (considering that the numbers would be up to date and not from Dec. 31) and ...
Flux's user avatar
  • 17.1k
1 vote

Correct calculation for determining real business book value per share?

What you're looking for is the intrinsinc value of a business, which would be, strictly from a money point of view, if you buy the stock right now, how much cash would you expect back in the future? ...
Paul Pham's user avatar
  • 123

Only top scored, non community-wiki answers of a minimum length are eligible