Market value refers to the market value of the company. The calculation method is: share price * number of shares issued. The interest rate of time deposit is fixed, but it will change with the change of economic activities. Therefore, the market value calculated at the current interest rate will be less than the book value calculated at the book interest rate. In addition, there are many factors that lead to the difference between the book value and the market value of enterprises, such as the company's growth, whether the assets are good assets, investor sentiment, corporate image, brand and other intangible values.
1, the specific meaning of market value
Market value refers to the social value of commodities formed by socially necessary labor time consumed by production departments. Market value refers to the price of assets in the trading market. It is a voluntary buyer and a voluntary seller, and there is no mandatory acceptable price after bidding. Book value is the value reflected by the company's stock in its accounting records. The usual calculation method is to subtract all liabilities from assets and then divide by the total number of shares in the company.
2. The specific calculation method of market value is as follows
First of all, the total book value of the company's shares is the company's capital plus statutory reserve fund, capital reserve fund, special reserve fund and accumulated surplus, MINUS accumulated losses. Then divide the total book value by the total number of shares issued by the company to calculate the book value of the shares. For example, given that a company has assets of 5 million yuan, liabilities of 6,543.8+0 million yuan and total shares of 6,543.8+000,000 shares, the book value of the company's shares is calculated as follows: total book value of the company: 5-654.38+000 = 4 million yuan. Book value of stock: 400÷ 10=40 yuan. The formula for calculating the market value is s = (ebit-i) (1-T)/KS. (ebit-i) (1-T) is the after-tax net income, KS is the cost of equity capital, and the after-tax net income is divided by the cost of equity capital.
3. Characteristics of market value
Market value refers to the social value of commodities formed by socially necessary labor time spent by production departments. Market value refers to the price of assets in the trading market. Voluntary buyers and voluntary sellers bid a price acceptable to both parties under the condition of rational behavior without any coercion. Intrinsic value is closely related to market value. If the market is efficient, that is, the prices of all assets reflect publicly available information at any time, then the intrinsic value and market value should be equal. If the market is not completely efficient, the intrinsic value and market value of assets are not equal for a period of time. The comparison between investors' estimated intrinsic value of assets and their market value. If the intrinsic value is higher than the market value, he thinks that the asset is undervalued by the market, and he will decide to buy it. When investors buy undervalued assets, asset prices will rise and return to the intrinsic value of assets. The more efficient the market is, the faster the market value will return to its intrinsic value. In the third volume of Marx's Das Kapital, the average profit rate is discussed, and it is pointed out that market value refers to the social value of goods formed by socially necessary labor time consumed by production departments.
4. Development of market value
Social value of commodities formed by competition among enterprises within the production department. This category was put forward by Marx when he discussed the average profit rate in the third volume of Das Kapital. Marx said: "Market value, on the one hand, should be regarded as the average value of goods produced by a department, on the other hand, it should be regarded as the individual value of goods produced under the average conditions of this department, which constitutes a large number of products in this department." When Marx put forward the category of value in the first volume of Das Kapital, he also meant the social value of goods rather than personal value. However, there, Marx abandoned the market condition and demonstrated it purely from the perspective of logical analysis. He pointed out that the labor that constitutes the value entity is indistinguishable general human labor, and the value of commodities depends not on the individual labor time of commodity producers, but on socially necessary labor.