asset value

Total value of a company's assets minus liabilities, divided by the number of ordinary shares in issue. The value of assets shown in a company's balance sheet may not represent the true value of that company's assets. The asset value per share shows the theoretical proportion of assets apportioned to each share in the event of a company break-up. In reality, preference shareholders and other creditors would receive any distribution before ordinary shareholders, and the amount that would go to them should be deducted from the total assets available in any calculation.