I've just noticed that many people are still confused between Market Value and Market Price.

Actually, value refers to what the market estimates a company or asset to be worth at a certain time, which is different from the price that changes every second.

A simple way to calculate market value is current stock price multiplied by the total number of shares.
For example, if a company has 300 million shares and the price is 1.50 baht per share, the market value is 450 million baht.
It's straightforward.

What’s interesting is that value is a metric investors use to assess the size and potential of a company in the long term, not just the current trading price.
Because market prices fluctuate based on traders’ emotions and news, but market value looks at the true worth of the business.

Several factors influence market value, such as the company's financial performance.
If profits increase and sales grow well, the market value will rise.
The overall economic condition also has an impact.
When the economy is prosperous, many companies benefit, along with good management, customer satisfaction, and liquidity—all of which affect market value.

This is a point many overlook.
Market value does not show the complete picture of a company.
It has limitations because it constantly changes with market trading, and sometimes these changes are driven by factors unrelated to the company's actual performance.
Stock markets can move unpredictably.

When talking about value, it’s important to understand the difference between Market Value and Book Value.
Book Value is the net asset value of a company, calculated from total assets minus total liabilities.
For example, if a company has assets worth 500 million baht and liabilities of 250 million baht, the Book Value is 250 million baht.
This shows how much shareholders would get if the company liquidated and sold all assets.

Book Value changes less than Market Value because it’s based on accounting figures.
Market Value is more volatile, fluctuating with market changes.
That’s why investors need to look at both indicators.

Another related term is Market Capitalization or Market Cap, which is actually close to the market value.
Market Cap is the total market value of all outstanding shares of a company.
It indicates the company's size.
For example, at the end of 2023, Apple Inc. had a Market Cap of up to 3 trillion US dollars, which is a good indicator of size and investment potential.

Overall, understanding market value helps investors better assess the worthiness of an investment.
They shouldn’t rely solely on technical analysis.
Value is a fundamental metric for decision-making, especially for long-term investments.
Study it and compare it with other indicators before deciding to invest in any business.