Book value.

When dealing with stocks, analysts often will want to know the book value of the common stock. Essentially, the book value has to do with the calculated worth of the company’s common stock as of the most recent balance sheet. There are several elements that go into calculating the current book value which make the information necessary in a number of different applications.

The initial book value of any asset is either the cash value of the asset, or the acquisition cost. Cash assets, of course, are not subject to depreciation. Buildings, land, and operating equipment would tend to be valued based on the acquisition cost initial, with the understanding that the total cost of acquisition includes both the purchase price and any other expenses associated with the acquisition, such as broker fees or other types of processing fees.