Book Value Vs Market Value

Book value vs Market Value

In this video, we have explained:
What are book value and market value of a share?
How book value and market value of a share is different from the face value of a share?
What is the difference between book value, market value and the face value of a share?
How to calculate the book value per share?
What is the market value of equity?
what is the meaning of book value, market value, and the face value?
What is the PB ratio or Price Book Ratio?
How to calculate the PB ratio?
How does PB value help to evaluate the correct value of a share?
What is the difference between book value of share and market value of the share?
How to use the PB ratio to evaluate per share value?
How to calculate face value and book value of a share of a company?

[YodaInDisguise]

Unfortunately, that video is very misleading! She says "Book value is what a company's creditors and investors could expect to receive if the company is liquidated."
THAT IS INCORRECT!

For a company that has been in existence for more than a short time, there is likely to be very little relationship between the company's assets on the books, and their liquidation value. And if there are marketable securities as some of the liabilities, and rates have changed, there may be little relationship between market value of the debts and their value on the books.  As a result, there may be very little relationship between liquidation value and book value.
As one example, compare the Book vs. Market value of a company like MSFT, where the difference is 10x.  Do you really believe either of those values relates to the liquidation value?

[byng]

You need to slow down "hold your horses 🐎" girl.