Determination of Firm value 1)Book value: assets minus liabilities on the balance sheet book value is based on historical cost minus accumulated depreciation 2)Appraisal value: firm value is estimated by an independent appraiser. This estimate is often based on the firms replacement coSt。Determination of Firm Value 1) Book value: assets minus liabilities on the balance sheet. Book value is based on historical cost minus accumulated depreciation. 2) Appraisal value: firm value is estimated by an independent appraiser. This estimate is often based on the firm’s replacement cost