Blum Holdings Inc (BLMH)

[kevindenver]

Book value is $0.09, many are using the term incorrectly.


WHAT IT IS:

Book value refers to the total amount a company would be worth if it liquidated its assets and paid back all its liabilities. Book value can also represent the value of a particular asset on the company's balance sheet after taking accumulated depreciation into account.

HOW IT WORKS (EXAMPLE):

Book value is calculated by taking a company's physical assets (including land, buildings, computers, etc.) and subtracting out intangible assets (such as patents)and liabilities -- including preferred stock, debt, and accounts payable. The value left after this calculation represents what the company is intrinsically worth.

Thus, book value is calculated:

Book value = total assets - intangible assets - liabilities

http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/book-value-1080