Book value represents the net asset value of a company, calculated as the total assets minus intangible assets and liabilities. It provides a historical measure of value and is frequently compared to market value to gauge intangible assets' and management's effectiveness.
The Market-to-Book Ratio (M/B ratio) is a financial valuation metric used to compare a company's current market price to its book value, providing insights into how the market values the firm's assets.
