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Book value is net assets (assets minus liabilities), or "owners' equity", in accounting terminology.
Insurers traded at about 1.5 times book value, or assets minus liabilities, before the crisis.
Comerica is paying 2.4 times book value, or assets minus liabilities, to buy Imperial.
Today United Technologies stock commands a valuation of more than three times its assets minus liabilities.
The group, led by Roberto Setúbal, is valued at around 2.2 times book value, or assets minus liabilities.
True, under Mr. Blankfein, the value of Goldman's assets minus liabilities per share has more than doubled.
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"On a pure asset minus liability situation, the shareholders' liability is covered right now," he said.
The percentage of stocks trading below their book values--assets minus liabilities--has fallen to about 17% for NYSE issues and 30% for Amex stocks, Fosback said.
LONG-TERM DEBT / NET CURRENT ASSETS: must not exceed net current assets (current assets minus current liabilities).
The Berkshire bid is also below Transatlantic's book value, or its assets minus its liabilities, of $4.2 billion.
Moreover, Berkshire's offer is below Transatlantic's $4.2 billion in book value, or the insurer's assets minus its liabilities.
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