Book value is often a poor estimate of a company's fundamental value.

Name: Book value is often a poor estimate of a company's fundamental value.
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Question

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Book value only takes into account the tangible assets of a company and does not consider the value of intangible assets such as brand name, intellectual property, and goodwill. It also does not reflect the potential future earnings of the company. Therefore, it may not accurately reflect the true value of a company.

Book Value Is Often a Poor Estimate of a Company's