Book Value To Market Value
The market value is the current stock price of all outstanding shares i e.
Book value to market value. 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. Difference between book value vs market value. The difference between book value and market value.
This is the price at which market values the stock. The market value is the value of a company according to the markets based on the current stock price and the number of outstanding shares. Book value is the recorded price of an asset which is shown in the balance sheet excluding depreciation.
On the other hand book value is a concept related to the value of an asset as recognized by a company on its balance sheet. Market value is the price that could be obtained by selling an asset on a competitive open market. Book value is the value of the company according to its balance sheet.
Book value and market value are key techniques used by investors to value asset classes stocks or bonds. The book value of an asset is its original purchase cost adjusted for any subsequent changes such as for impairment or depreciation. When the market value is less than book value the market.
Whereas market value is the price lower or higher than the book value which can be obtained in case of selling of that assets class or it is the price which is offered by a customer during the sale of the assets. The market value per share of a company fluctuates continuously throughout the trading time period. Essentially the market value of an asset is a quantified reflection of the perception of the value of the asset by the market.
Market value per share is the current value of the stock. The price to book p b ratio is a popular way to compare market value and book value. Book value is equal to the value of the firm s equity.