The adjusted book value approach is useful in valuing holding companies whose main assets are publicly traded or other investment securities, but it is generally less applicable for operating businesses.

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The adjusted book value approach is based on the assumption that the value of a company's assets is equal to their fair market value, adjusted for any liabilities or intangible assets. This approach works well for holding companies that primarily hold investment securities that have a readily available market value. However, for operating businesses that have a mix of tangible and intangible assets, it may be less applicable as it does not take into account factors such as brand value, customer relationships, and other non-financial factors that can affect the company's value.

The Adjusted Book Value Approach Is Useful in Valuing Holding