Book Value Per Share Vs Face Value

The difference between market value per share and book value per share.

Book value per share vs face value. The market value per share represents the current price of a company s shares and it is the price that investors are willing to pay for common stocks. The book value per share and the market value per share are some of the tools used to evaluate the value of a company s stocks. The current price to book ratio for facebook as of december 22 2020 is 6 69.

For this we need to calculate total assets minus total debt. The market value per share is a company s current stock price and it reflects a value that market participants are willing. Difference between face value market value book value market value.

For example if a stock is trading at a share price of rs 100 then this is the market value per share of that company. In a nutshell market value per share is the current value at which the stock is trading in the market. Historical price to book ratio values for facebook fb over the last 10 years.

Market value per share is the current value of the stock. And finally the book value of a company is the total value of the company s assets that shareholders will receive in case the company gets liquidated. If the market value is greater than the book value this indicates that the investors are an optimist about the earnings growth profitability expansion which will increase the book value of the company.

Book value per share. Cipla s face value share rs 2 0 won t change unless the company splits the stock to halve the stock price by doubling the number of shares book value is value of the company s assets if it were to be liquidated on a day less all debt holder claims. Total assets rs 12 461 79 cr total debt rs 1 380 61 cr.

Book value per share face value reserves per share. Book value per share rs 2 rs 245 13 rs 247 13. In the example here with cipla.