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Saturday, August 7, 2010

Book Value(BV) of a stock/share-How to find it & difference between book value & market value (MV)


Book Value:It is the actual worth of the stock.i.e the net asset of a company after deducting all liabilities divided by number of stocks of a company.
In simple language it means how much each stock would be worth if the company goes bankrupt.

Book value per share gives accounting value of a company's stock by dividing the company's total equityonto number of shares that exist in the company.

Market Value:Market value is a market term.It reflects consumer's expectation about the value of company's present & future performance , including future earning, growth & dividends.

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