Market value refers to the market value of a company. The calculation method is: share price * number of shares issued.
The interest rate of time deposits is fixed, but with the change of economic activities, the interest rate will change, so 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 an enterprise, such as the growth of the company, whether the assets are excellent assets, investor sentiment, corporate image, brand and other intangible values.
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 an asset in the trading market, which is acceptable to both the voluntary buyer and the voluntary seller after rational bidding without any coercion.
The book value is the value of the company's shares according to the company's accounting records.
The usual calculation method is to deduct all liabilities from assets and then divide by the total number of shares in the company. The specific calculation method is as follows: first, the company's share capital plus statutory public welfare fund, capital public welfare fund, special public welfare fund and accumulated surplus, MINUS accumulated losses, calculate the total book value of the company's shares. 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's assets are 5 million yuan, its liabilities are 6,543,800 yuan, and its total shares are 6,543,800 yuan, the book value of its shares is calculated as follows:
Total book value of the company: 500-100 = 4 million yuan.
Book value of stock: 400÷ 10=40 yuan.
References:
Market value-Baidu Encyclopedia
Book value-Baidu Encyclopedia