So this is interesting.

This is the book value for a share.

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

And it's something interesting here.

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

They've never made money.

Sometimes called the market cap.

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

Well, what's the market cap?

It's actually horrible.

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

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

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

When they assign a 120,000 market cap there...

Our liabilities are still 3 billion.

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

Now what's our mantra of this day and age I wonder?

That would have been the market value per share.

It has 500 million shares.

They've never made money.

And I think this is very obvious to you, but let me write that down.

They're saying it's worth 5 million.

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.

Stock Chart

So this is this 3 billion of equity divided by the number of shares.

And that's interesting.

And just to kind of tie it a little bit with what we did in the first video, if we have a million shares, the book value of the equity is 5 million, so if we say the book value per share is just going to be this number divided by the million shares I have.

He's a stockbroker.

So what you do is you multiply these numbers to figure out, what is the market value or the market capitalization of the company?

The Tokyo stock market recorded an unprecedented loss.

So, in this situation, let's think about this situation where the stock price goes down

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

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

And that's split amongst 500 million shares.

It is a customary contraction like our

'Company.' It is a customary contraction like our

So that's fine.

goodness.

SCOTT Inc.'s stocks are blue chip stocks.

How did the stock offering go?

And I have a publicly traded price, so on any given day,

Stockbroker.

Stockbroker?

And maybe this guy's even growing faster, so maybe they're being conservative by only giving this guy a 10 price to earnings.

So 5 million divided by 1 million is 5.