Book Value And Market Value Difference
Book value gives us the actual worth of the assets owned by the company whereas market value is the projected value of the firms or the assets worth in the market.
Book value and market value difference. When the market value is less than book value the market. Market value is the current valuation of the firm or assets the ongoing price of the share in the market on which it can be bought or sold. Market value is the company s worth based on the total value of its outstanding shares in the market which is its market capitalization.
Book value is equal to the value of the firm s equity while market value indicates the current market value of any firm or any asset. Conversely market value shows the current market value of the firm or any asset. Book value changes annually but market value changes every next moment.
Market value tends to be greater than a company s book. Book value is the actual worth of an asset of the company whereas market value is just a projected value of the firm s or asset s worth in the market.