Explore commonly used personal finance terms.
Adjusted book value is a company’s book value after accounting for various adjustments, such as unrealized gains or losses, intangible assets, and inventory valuations. This metric provides a more realistic measure of a company’s net worth, often used in valuation analysis and investment decisions. By adjusting the book value, investors gain insight into the true value of assets and liabilities, especially in cases where book value may not reflect the current market value of certain assets.
