The market value equity of 1.5 billion.

So the asset value is all in equity.

It's the market's value of the owner's equity

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

You have 189,000 as the value of this equity.

There's two notions, there's your book value of equity, and that's the value of the equity that comes out of your balance sheet.

Because the book value of its equity is 5 million.

And the denominator here is the equity, the book value of our equity, so that's 5 million.

So the shareholders' equity, or you could almost say the book value of the equity of the company, is 5 million. 5 million equity.

Then the number that pops out on the equity side, that is a book value of your equity.

In return on equity, the numerator is the net income that we got, so it's 350,000.

And then, that gets you to the market value the equity.

They just look purely at the equity value or the market capitalization.

This is the market's guess of the value of this company's equity.

In our case, the book value of the equity was 5 million.

net

net

Net

Equity is what's left over. So let's say this is all book value.

We're willing to say that the market value of your equity is 210,000.

I think that's what I wanted a write here, market value of equity.

And book equity per share, or the book value per share of 6.00.

So that's why the book value of the equity is now 2 billion.

By applying the same price to earnings, we're saying that the market value of this equity is 210,000, while the market value of this equity is what was it? 189,000.

let me give you that piece of terminology, it just means net asset value.

Fish Net

Fake Net

Fish Net

CDOs that they have on their balance sheets is the larger than their equity value.

Notice, the book value of my equity, well it might have changed a little bit.

And now the book value of our equity is now going to be 2 billion.

you have to buy this back from me at the NAV (net asset value) per share.

In the last several videos we talked about the difference between the book value and the market value of a company's equity.

New Net Connection...

Disconnect from Net

Net Status Monitor

Net of Magic.

The Net Ranger?

So equity.

Equity tranche.

That's equity.

Now, each of these shares, well the 1,000 is called the NAV, or the net asset value,

And this is the market value of the equity, what the market thinks the equity's worth.

The study shows that the highest net present value for palm oil is on land that's been degraded.

So he owns it outright so all of the 100,000 of asset value is actually his equity.