Book Value And Market Value Of Stock
For example a company has a p b of.
Book value and market value of stock. Book value and market value are key techniques used by investors to value asset classes stocks or bonds. Book value is the value of the company according to its balance sheet. Book value total assets liabilities for example if the abc company abc has total assets of 500 million and total liabilities of 85 million the company s.
It is equal to the price per share divided by the book value per share. When the market value is less than book value the market. Market value is the value of a stock or a bond based on the traded prices in the financial markets.