I must be missing something. No scenario I run puts the book value at less than $3.00 per share. Most put it higher. But it's obvious that the market doesn't agree. Anyone else have input on this. Replies welcomed.
The post-BK book value of OTT may well be $3.00, or it may be a different amount.
There are many reasons why the current actual market value may be different from a possible future book value. Market value and book value are different concepts. Market value is determined by the combined expectations and efforts of buyers and sellers. Book value is determined by a combination of legal requirements, accounting practices, and past business results.
The relationship between market value and book value for a company or group of companies is often calculated and is typically labelled Price/Book or some variation thereof. Price/book can be used as one data-point in estimating the value of a company. However, there is no cast-in-concrete relationship between price (market value) and book value.
I'm well aware of the difference but thanks for taking the time to post the primer. I am assuming a market value of one times book value. Might be more and might be less. You can't quantify or graph perception and mood and sentiment.