It has no specific relation to the value of the company's assets, such as book value per share does, which is based on the information from a company's balance sheet. Find the market value of cash and cash equivalents. For a stock, book value per share would be the shareholder's fund of the company excluding preference share capital if any divided by the number of equity shareholders. But let's say that investment has grown to be worth Rs 25, then the market value would be Rs 25.

And the market price would be the LTP of the stock. The term "net asset value" is commonly used in relation to mutual funds and is used to determine the value of the assets held. If the market value of the inventory is unknown, the net realizable value can be used as an approximation of the market value. How do you value individual assets? The market value of this category, which includes domestic and foreign currency, bank accounts, short-term debt securities like treasury bills, and certificates of deposit is the most easily calculated of any asset. The calculation of the NRV can be broken down into the following steps: Determine the market value or expected selling price of an asset.

Simply put, market value refers to the price of an asset in the marketplace. Please watch full video for better understanding The term is also used to designate the market capitalization of a company that is publicly traded.
c. Price/Book Value (P/BV): This method uses a multiple applied to the book or accounting value of net assets of the company. Simply put, market value refers to the price of an asset in the marketplace. It’s easier to find this number for exchange-traded instruments (futures, stocks) than for over-the-counter instruments (fixed income securities). This would be the book value. The market value of a company's equity is the total value given by the investment community to a business. Book value is the total value of a business' assets found on its balance sheet, and represents the value of all assets if liquidated.

Net asset value (NAV) is defined as the value of a fund’s assets minus the value of its liabilities. Over time, the value of an asset may increase or diminish due to appreciation or depreciation.

In the case of buildings, the value of the asset may rise. According to the SEC, mutual funds and Unit Investment Trusts (UITs) are required to calculate their NAV
P/BV is particularly relevant for sectors where income (and thus, value) is entirely dependent on the value of assets, such as banking. The term is also used to designate the market capitalization of a company that is publicly traded.

d. Calculate Book Value of an asset available in Post Office. It’s easier to find this number for exchange-traded instruments (futures, stocks) than for over-the-counter instruments (fixed income securities). In general, fair value calculations fall into one of three categories. It can be challenging to calculate fair value if there are no clearly observable market prices.