What is net book value (NBV)?

Net book value (NBV) refers to the historical value of a company’s assets or how the assets are recorded by the accountant. NBV is calculated using the asset’s original cost – how much it cost to acquire the asset – with the depreciation, depletion, or amortization of the asset being subtracted from the asset’s original cost.

What is net book value?

Net Book Value = Original Cost of Asset - Accumulated Non-Cash Charges where, Original cost of asset: The price the asset was purchased for, plus all expenses and costs to bring the asset to use. These expenses and costs include: delivery fees, taxes, and installation.

What is netbook value & how is it calculated?

Netbook value, which appears on a company’s balance sheet, is the net worth or the carrying value of its assets according to its books of accounts. It is computed by deducting the asset’s total cumulative depreciation from its original purchase cost. The NBV of the company is the most popular financial metric used when valuing businesses.