A company's market value is generally less than its book value.

Question

Quizplus · Accepted Answer

Generally, a company's market value is greater than its book value because the market value takes into account the company's potential for future earnings and growth, while book value only reflects the company's assets minus its liabilities. However, there may be situations where a company's market value is less than its book value, such as when the market has a negative perception of the company's future prospects.

A Company's Market Value Is Generally Less Than Its Book