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The term value can refer to either accounting value, market value, or economic value.
Measures of accounting value include book value per share, net worth per share, net asset value per share, and net tangible asset value per share.
Market value refers to common stock equity capitalization or financial "size", and is equal to the share price times the number of shares outstanding. Publicly-traded market value includes only those shares that are not held in private accounts.
Measures of accounting value and market value can be used for quick mechanical screening criteria for filtering out common stocks for further investigation.
In contrast, economic value refers to intrinsic, long-term, ultimate value of an operating enterprise as determined by net cash flow analysis using spreadsheets and formulas.
Measures of accounting value include book value per share, net worth per share, net asset value per share, and net tangible asset value per share.
Market value refers to common stock equity capitalization or financial "size", and is equal to the share price times the number of shares outstanding. Publicly-traded market value includes only those shares that are not held in private accounts.
Measures of accounting value and market value can be used for quick mechanical screening criteria for filtering out common stocks for further investigation.
In contrast, economic value refers to intrinsic, long-term, ultimate value of an operating enterprise as determined by net cash flow analysis using spreadsheets and formulas.
Intrinsic value is independent of quoted market prices. Accounting value is commonly confused with economic value.
