FormerXBC Inc XEBEQ

RE:RE:where were they?

[Ciao]

Yes, you are correct. In XBC's case as an ongoing concern, there is no need to liquidate so the book value would be close to it's liquidation value. With demand for their products and services, their assets have increased in value from their purchase price as well.

Market vs. Book vs. Liquidation vs. Salvage

Market value typically provides the highest valuation of assets although the measure could be lower than book value if the value of the assets has decreased due to market demand rather than business use.

The book value is the value of the asset as listed on the balance sheet. The balance sheet lists assets at the historical cost, so the value of assets may be higher or lower than market prices. In an economic environment with rising prices, the book value of assets is lower than the market value. The liquidation value is the expected value of the asset once it has been liquidated or sold, presumably at a loss to historical cost.

Finally, the salvage value is the value given to an asset at the end of its useful life; in other words, this is the scrap value.

Liquidation value is usually lower than book value but greater than salvage value. The assets continue to have value, but they are sold at a loss because they must be sold quickly.

AlexDonovan wrote: Book value is not the same as liquidation value.

I'm not saying the company is/was not undervalued, but book value can be deceiving.