Adjusted Book Value (ABV) isn’t the most popular method—but that doesn’t mean it’s not important.
In some cases, when valuing a business, it’s the method selected as the most suitable one.
Why?
Because sometimes, the real value lies in the assets, not the operations.
Especially in businesses that:
- Own land in prime locations
- Hold assets that appreciate over time (not depreciate)
In some cases, the land alone could be worth more than the business itself—higher than what a DCF valuation might suggest.
So eventhough using DCF or market multiples are more frequently used, the adjusted book value helps paint the full picture.
And sometimes, that picture is worth a lot more than expected.
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