Book Value To Market Value

The difference between book value and market value.

Book value to market value. The market value is the current stock price of all outstanding shares i e. Market value is the value of a stock or a bond based on the traded prices in the financial markets. Book value is the recorded price of an asset which is shown in the balance sheet excluding depreciation.

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. Book value is the value of the company according to its balance sheet. Market value is the price that could be obtained by selling an asset on a competitive open market.

The price that the market believes the company is worth. This is the price at which market values the stock. The market to book ratio also called the price to book ratio is a financial valuation metric used to evaluate a company s current market value relative to its book value.

Market value per share is the current value of the stock. Ford fiesta 1 4 trend 5 door book value volkswagen polo 1 4 comfortline book value ford bantam 1 3i book value volkswagen polo 1 6 comfortline book value opel corsa utility 1 7 dti book value nissan np200 1 6 s 16v book 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.

Book value is equal to the value of the firm s equity. Conversely market value shows the current market value of the firm or any asset. Difference between face value market value book value market value.

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 currently paid or offered for an asset in the marketplace. The book value of an asset is its original purchase cost adjusted for any subsequent changes such as for impairment or depreciation.