Market value represents the current price at which an asset can be bought or sold, and it often differs from book value. For instance:
Undervalued Stocks: If a company's book value is higher than its market value, the stock may be considered undervalued. Overvalued Stocks: Conversely, if the market value is significantly higher than the book value, the stock may be overvalued.
Investors often compare these values using the price-to-book ratio (P/B ratio) to make informed investment decisions.