Kirjanpitokäypä

Kirjanpitokäypä, often translated as "book value" in English, refers to the value of a company's assets as recorded in its accounting records. It is calculated by subtracting the accumulated depreciation and amortization from the original cost of an asset. This value is important for understanding the financial health of a company and for making investment decisions.

In accounting, assets are typically recorded at their historical cost. Over time, as assets are used and wear out, their value decreases. This decrease in value is recognized through depreciation for tangible assets and amortization for intangible assets. The book value of an asset is therefore its original cost minus these accumulated charges.

The total book value of a company is the sum of the book values of all its assets. This can be compared to the company's market value, which is the value of the company as determined by the stock market. Often, a company's market value will differ from its book value, reflecting factors such as future earnings potential, brand recognition, and economic conditions. Analyzing the relationship between book value and market value can provide insights into whether a company's stock is overvalued or undervalued. For example, a company trading significantly below its book value might be considered a potential investment opportunity.