- Trending Categories
- Data Structure
- Operating System
- C Programming
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
Difference between book value and market value.
The major differences between book value and market value are as follows −
Real value of an asset.
Reflects firm’s equity.
Not related to financial market.
Depreciation is taken into account.
Book value = (assets – liabilities)/ number of outstanding shares.
Book value = cost of asset – (depreciation + amortization).
Frequency of fluctuations happens at periodic intervals.
Accounted in balance sheet based on historical cost, amortized value or fair value.
Maximum value of an asset/security which can be bought/sold in the market.
Reflects current market price.
Market value is dependent on financial market.
In most cases, depreciation is not accountable.
Market value = market price per share * number of outstanding shares.
Frequency of fluctuations is very frequent.
Fair value/market value of an asset.
- Difference between Book Value and Market Value of a Share
- What is the difference between Book Value and Replacement Value?
- What is the difference between Market Value and Present Value?
- Differentiate between fair value and market value
- Write the difference between present value and future value.
- Write the difference between present value and net present value.
- Difference between Security Market Line (SML) and Capital Market Line (CML)
- What is the difference between Liquidation Value and Going Concern Value?
- Explain market approach (relative value) in mergers and acquisitions
- What is difference between cash account and cash book?
- Write the difference between stock market and stock exchange.
- Write the differences difference between forex and stock market.
- Difference between Call by Value and Call by Reference
- How to calculate market value of a company?
- Difference between Net Present Value (NPV) and Profitability Index (PI)