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Book Value Vs Stock Market Share Value Calculator!I have created this calculator ,basically part of  the reason, is for my own personal interest , the other part is to share it out to the world wide web. So that people  don’t need to Use a calculator to  calculate the formula every time when they  need  to estimate the value of a listed stock company.

Check out the  Book Value Vs Stock Market Share Value Calculator 

Before you jump into Plugging in Data into the fields below

Please Spare 1 minute to read this!

I will use a very simple Life  example to explain about the data you will need to Plug in

Let Say Brian owns a   company , and he want to sell it. After doing his math, he found out that his company has a clean cut assets of $ 1 million. An Asset can be a Property , trademark, Patents  . In the Meantime Brian company has a liability of $ 200,000. Liability can be debt owe to Banks , vendors , supplier, assets depreciation  etc.

How Much Brian Company can be sold for 

So Brian take its total Asset $ 1 Million  and sold all, and then pay out its Debtors and Supplier , the company left $800k.

How Much  the Shareholder of Brian Company can Get back.

In Brian Company, there are 2 type of Share Holder.  The Common Stock Share Holder and the Preferred Stock Share Holder.

Preferred Share Holder – Is Share Holder which have Priority on the Asset and Earning of Brian Company.

Common Share Holder – Is just an Ordinary Share Holder

So After Brian Sold its company , the Preferred Share Holder will get the Proceeds first , after that the remaining will only be distributed to the common Share holder.

So what is the  Share Market Value

The Share market value, is the perceive value , that investor had base on their own analysis on Brian Company .

Let Say Bill Perceived Brian Company worth $0.50  per share while  James Perceived Brian Company worth only $ 0.30 per share.

But the Book Value of Brian Company is $ 0.40. after selling off all assets and paying all its company debt.

Book Value lower than Market Value

This Happen when investor thinks that the company does not worth that much than it is actually is.

So the company could be under value. but it depends on various situation

• Does the company have future growth plan
• Does the Company have a vision

Book Value higher than Market Value

This Happen when investor thinks that the company worth more than it actually is.

So  is the company overvalue , it depends on various situation  also.

• Is there over market Sentiment
• Is the Future promising too good to be true

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