Clearing doubts about the difference between book value and market value

Clearing doubts about the difference between book value and market value

Let's get to know what book value is.

The book value is the latest balance sheet net asset value of the company, i.e. the amount that will be received upon liquidation of the business. which has the following calculation methods

Book Value = Total Assets - Total Liabilities

So what are the limits on book value?

because the book value will take the periodic number making it impossible to know the changes during the period And the book value is obtained by means of accounting. Some numbers that are difficult to calculate are modified. The value of intangible assets is difficult to determine and also difficult to calculate.

Let's get to know what the market value is.

Market capitalization is the current value of a company based on its stock price. which has the following calculation methods

Market capitalization = market price per share x total number of common shares.

So what are the limitations of market value?

Because the market value is expressed in relation to the valuation of the company. But this may not always be true. Because the stock price is moving all the time. Therefore, if investing, you should be careful with intraday movements and various factors of stocks as these may affect the market value. Relying solely on the market value may not be the best way to assess a stock's potential.

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Examples of various brands that we take care of online marketing

>>https://www.chatstickmarket.com/portfolio

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