1. Definition
Total market value refers to the total market value of all shares issued by the company. The so-called total market value refers to the current market price of the company's shares multiplied by the total number of shares issued by the company. This value can be used to measure the value of the company in the market.
Total assets refer to all assets owned by the company, including all items in the balance sheet, such as equity, current assets, fixed assets and real estate, representing the financial scale and asset value of the company.
2. Calculation method
The total market value is calculated by multiplying the current market price by the total number of shares issued by the company. For example, if a company has 100000 shares and the current stock market price is 10 yuan, then the total market value of this company is1000000 shares multiplied by10 yuan, which is equal to1000000.
Total assets are calculated by adding up all assets. For example, if a company's financial report shows that they now have 300 million current assets, 200 million fixed assets and 654.38 billion land and real estate, then the company's total assets are 3+2+654.38+0 = 600 million.
3. Application scenarios and significance
Total market value and total assets have different meanings, and have different meanings and values in different application scenarios.
The total market value is of great concern to the stock investment industry. Generally speaking, companies with higher market value represent more attractive investment opportunities, because companies with relatively higher market value usually have higher returns. At the same time, the market value also directly affects the company's balance sheet and shareholders' equity.
Total assets reflect the financial strength of an enterprise and are an important indicator used by investors to analyze the future development prospects and growth space of the company. If the company's total assets increase substantially, it means that the company will have more investment opportunities in the future and may have a higher rate of return.
4. Relationship with stock price
Although the total market value and total assets look similar, they are different from the stock price.
The total market value is closely related to the stock price, which directly affects the company's market value. If a company's share price soars, its total market value will also soar. On the other hand, if the stock price continues to fall, the total market value of the company will also fall.
Total assets have little to do with stock prices. It reflects the value of all assets of the company. Therefore, the decline of stock price does not necessarily mean the decline of total assets. We need to carefully understand the company's total assets scale and total assets growth from the company's financial report.
Through the above analysis, we can clearly understand the difference and significance between total market value and total assets. Total market value and total assets are not exactly the same concepts, but they are both key indicators to understand the company's financial situation. Therefore, when you want to analyze the financial situation of a company, you need to know these two indicators carefully.