Book Value vs Market Value: Book Value Explained In Simple Terms

Book value is a core method for value investors. Evaluating a company’s worth can be challenging when there are many components to factor in, but long-term investors must be able to understand how to assess the worth of a company before investing in it.

Book value is what the company is actually worth after they sell their aseets and pay down their debts. Market value, is what the market, aka, people, value the company at

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