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how do you calculate net book value. Formula to Calculate Book Value of a Company. Net Book Value is equal to Total Assets minus Total Liabilities.
An assets book value is equal to its carrying value on the balance sheet and companies calculate it by netting the asset against its accumulated depreciation. The formula used to calculate the net book value of the assets is as below. Alternatively Book Value can be calculated as the sum total of the overall Shareholder Equity of the company.
The difference between them is shareholder equity which is the part of the company that investors actually own.
The formula to calculate net book value is. Net income on a per share basis is referred to as EPS or earnings per share. NBV Gross Cost Of Asset Accumulated Depreciation Lets start by calculating the original cost of an asset. Net book value is the amount at which an organization records an asset in its accounting records.