A market value well above book value may be appropriate for a company if it has many unrecorded assets.

Question

Quizplus · Accepted Answer

If a company has many unrecorded assets, such as patents or valuable intellectual property, the market may value the company higher than its book value, as the market sees the potential for future growth and revenue from these assets. This can result in a higher market value for the company than its book value would suggest.

A Market Value Well Above Book Value May Be Appropriate