The "book value" is what you would get if you waved a magic wand, sold all the company's assets, and paid off all the companies bills....divide THAT dollar amount by the number of outstanding shares and that is what "book value" is...

The "market value" is the price per share multiplied by the number of outstanding shares...

If investors believe the corporation has any future, the market value can be far higher than the book value...

Book Value means Stockholders' Equity

Market value = Marketprice per sh x shares outstanding

Hello everyone,

I am confused.

I need to calculate the market to book value.

Is the value on the balance sheet the book value? I would think so.

However, how do I find the market value?

I can also look at the statement of equity for two different values of equity, one at the beginning of the year, one at the end of the year. However, the book value at the end of the year is the one used on the balance sheet. Should I use this one?