That would have been the market value per share.

This is the book value for a share.

Really, in my mind, it's very similar to depreciation.

So that's fine.

This is the book value.

Let's say that the market value we talked before that the book value per share of this company is 5.

So if we believe these numbers, if we believe the books, the book value of the shares is about 3.02 per share.

So each of those shares is one 500 millionth of this equity.

Whenever you hear things like book value, and I've done a couple of videos on book value versus market value, but the book value is essentially what you have on your accounting books.

So this is interesting.

So let's see, the book value per share is what?

So let's say if this was on our books.

And it's something interesting here.

But the market value or assets is essentially, what is the market saying the assets are worth?

And now there's 2.5 billion shares to split this equity.

And this is very relevant to what's going on in the world today.

And that tells you that the book value per share is 4.

Not so in Italy.

Or if they think that this is just a kind of an asset with a useful life that has been shortened.

That's something like eight percent of the total agricultural output globally.

They're able to do more with whatever assets we give them.

And let's say that there are 100 million shares.

Toxic spirals

But it is just like a stock.

So, let's see, you're doing 8.4 million divided by 2.78 million shares.

(Applause)

And that's interesting.

Valid date formats

We have 3 billion in loans.

So what is happening here?

I found that Phillips name in your notarial ledger.

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

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

You can either live in a world which is poorer, which people in general don't like.

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

And that's split amongst 500 million shares.

If this is the market value so let's say this is the stock price, or the market stock price I'd be skeptical of paying two times the book value.

A flight manifest?

But, actually, it's suddenly come to me after years working in the business, that what we create in advertising, which is intangible value you might call it perceived value, you might call it badge value, subjective value, intangible value of some kind gets rather a bad rap.

That's essentially the market's sense of what this number really is.

It has 500 million shares.

Now, you might remember from previous videos that the book value of the assets in Ben's company are only 140,000! 20,000 of cash, 100,000 of inventory, 20,000 of... this is not equity, this is equipment I should call it.

But we'll talk a lot more about that when we deal with real examples.

But just for the sake of simplicity, I've just made all the banks in the situation where the book value of the

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