 अन्वर पास बलनचीट हैं, अन वर पास परास वकर तुवीःतिया है, अन भर पास चाशय प्रों स्ब अद्दबन अग, ये दीन तिराशाँ के ये अन्वर परास़ खील ग़ा क loan sheet and income statements. तो आप यह सपोज दे आर आप आप आता हैंगे दालर दोलर जो प्रकाडीने हैंगे आप आप आप के पास तुस कुपनि का बुक वालिय। आजगेगा ताप भोड भी तुछ देँन्गे डालर तो उसका जो तोचल वोछ है अप उप ताट कुपनी एकोड़िं को आप आप the overall value of the of a company according to its accounts according to its books when we account for the book value we also look at the book value per share so if any company we are talking about is a corporation or listed company and it has extended shares in the form of shares then you have to look at the book value per share for example if you want to look at the share of the book value per share then it is very easy to understand and basically it is the total dollar amount of the shareholder's equity account which is considered which is taken into account from the firm's official balance sheet and you divide it by the number of shares of common stock outstanding so when we say outstanding shares it does not mean that there is no beginning or you are keeping it with your company outstanding shares means that all the shares which shareholders have bought and in this you will add share blocks which are institutional investors meaning that the major investors of the company you have given shares or restricted shares that you will add to all the shares and you will have the value we say outstanding shares so when you want to look at the book value per share then you have to divide the shareholder's equity with the outstanding shares then you will have the value of the book value per share and this is used to basically look at the overall performance of the share of different companies so when you look at the book value per share then it means that you will compare the book value per share with your investment decision along with this one more important concept we use is called the market value so when we talk about the market value of a company it is different from the book value book value is different from the book value per share of the company but market value is different from the book value per share of the company it depends upon the overall reputation of the company the types of investment decision board of governors decisions, board of governors composition all these things influence the company if there is any kind of problem then there will be negativity spread so the market value of the company deteriorates sometimes if there is any emotional occurrence event in which that particular company gave a very good contribution to society or did some good work then people become sentimental and they become emotional and they become more inclined towards that company and from there they start understanding that company well then it is possible that the market value of this particular company increases so the market value is different from the book value and when we are going to make up a decision that we have to invest in any company's shares or how is the overall worth of the company then we account for both the values of the company because when we decide based upon only one aspect it will not be a good decision or a comprehensive it will not give you a comprehensive impression or comprehensive picture of the financial performance of that company so when we talk about the market value it basically represents the value of a company according to the stock market and I have just told you that the stock market is very volatile stock market has sentiment, emotions, feelings, all these things play a very important role so in stock market the price of any company's share will determine the market value so it is basically the price of an asset that particular share or asset will get in the marketplace or we can say that that helps you in account in taking into consideration or giving you an idea about the overall market capitalization of that particular firm or a company and in other words we can also see that it is an aggregate market value of a company which is represented in the monetary terms if you look at the market capitalization value in Pakistan it will be in our currency, in PTR, in Pakistani rupee if you are going to look at the international market then the market capitalization will be determined according to the stock market movements and it will be given to the dollar so it depends upon what type of currency is being used in order to explain or in order to measure or quantify the market value of a certain company so when we talk about the market value of a company basically for the calculation of the market value we use the current market price of the share of that company that is taken into account from the data shared by the stock market and with the help of that we account for market prices and to account for the market value or to measure it we use a formula which helps us in calculating the market capitalization of a company and for that we take into account the current market price per share from the stock market you will get information from its website and if you multiply it with the total number of outstanding shares then you will get to know the overall market capitalization or market cap of that particular company so market capitalization of a company and book value of a company they are two different things because one you are taking from the financial statement and the other value you are taking from the stock market so you will get two different variables book value and market value two different pictures are being explained one tells you about the market situation how that particular company is seen in the market how its performance is being seen if people are forcing that it is going to grow in the future then naturally they will like to invest more and more in that company and when there is more demand for its shares then naturally their price will go up so market share and book value and market value are two different concepts and they are used together in order to understand or in order to have a better picture so in order to explain this market value calculation or the market capitalization of a company calculation I am going to use an example so for example we are having a company XYZ and its share for example suppose today's stock market website accordingly its price that turned out to be 25$ per share and its outstanding shares are 1 million so from there we can get the total market capitalization or the market value of the company which is 25 million dollars and basically when we talk about the significance of market value then the financial analyst or any news channels when they are discussing the different dynamics of the business or discussing the good performance of a company or the bad performance of a company then they account for the market value they account for the book value and they are not making any assumptions so similarly the financial analyst or the investors they always consider the market value of a company or overall market capitalization of a company to account for and they make their decisions or whatever analysis they have to give this particular aspect is considered because it is taken out of the stock market or within that to represent the performance of a company this particular thing is considered so this plays a very important role