Calculation of Book Value

[nickenumbers]

Guys,

 

I wanted to get myself clear on this once and for all.

 

What is the best, most widely adopted way of calculating Book Value of a company?

 

Option 1- All Assets at carrying value - liabilities = Book Value

 

Option 2- All Assets at carrying value - liabilities - intangibles = Book Value

 

Option 3- Some other variation.  (Please describe)

 

 

I have seen different news sources use different versions and I wasn't sure.  I get the fact that regardless, one must be consistent so that we are comparable over time and between companies..  But I wanted to get clarity from you guys.

 

Thanks.

[racemize]

Both are fine, but the second one should be labeled “tangible book value”.