GO
Loading...

Book Value vs. Market Value: CNBC Explains

There are many ways a company can be valued, but one important distinction to make is between its value on paper and the value determined by the market. This video follows from the previous series and outlines two hypothetical companies and how their accounting and valuations are created. Khan of the Khan Academy clarifies the difference between market value and book value.

From this video, you’ll understand:

  • The difference between book and market value
  • What constitutes the gap between book and market value

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Latest Special Reports

  • CNBC presents a special report on how architecture, innovation and infrastructure are providing solutions to urban problems.

  • Tips on the best-performing portfolio strategies and global market trends that can help you become a smarter investor.

  • The nexus of technology -- cloud, social, mobile and data -- are transforming user behaviors and creating new businesses.