The net value is equal to the original value of fixed assets or the balance after the replacement full price MINUS accumulated depreciation. Depreciation value reflects the existing value of fixed assets after wear and tear, as well as the actual amount of funds occupied; Compared with the original value of fixed assets, it shows the old and new degree of existing fixed assets and the general situation of its effectiveness in dealing with the people.
Extended data
The net stock value represents the own funds and rights owned by shareholders. The net value of a stock is closely related to its real value and market value. Because the net value of stocks represents the operating and financial conditions of the company in the past few years, it can be used as the main basis for measuring the true value of stocks.
If the net value of the stock is high, it shows that the company is in good financial condition, shareholders enjoy more rights and interests, and the stock has strong profitability in the future. The real value of stocks must be high, and the market value will also rise. Do the opposite. Compared with the real value and market value of stocks, the net value of stocks is more accurate and reliable, because the net value is calculated according to the existing financial statements, and the data it is based on is quite specific, accurate and reliable.
At the same time, the net value can clearly reflect the cumulative results of the company's operations over the years; The net value is still relatively fixed, and generally only changes when the year-end surplus is recorded or the company increases capital.