analysis · beginner
Book value vs market value
Book value is accounting net worth per share, while market value is what investors currently pay on the exchange.
Book value uses assets and liabilities from the balance sheet, not live trading prices.
Indian banks and holding companies are often discussed relative to price-to-book multiples.
A stock can trade far above book value when markets price growth or intangibles.
Writedowns, revaluations, and accounting policies can change reported book value.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.