Glossary Index / Net Book Value

Net Book Value

The difference between total assets of a business (net of accumulated depreciation, depletion, and amortization) and total liabilities of a business as they appear on the balance sheet (synonymous with Shareholder’s Equity).

When referring to an intangible asset, net book value is the capitalized cost of an intangible asset less accumulated amortization as it appears on the accounting books of the business.