Share Price vs Book Value per share It's does not look good! Where is the bottom?
Book Value is the company's equity value as reported in its financial statements. Theoretically, Book Value represents the total value that shareholders would receive if the company was liquidated after selling all assets and paying all debts and obligations.
“Should the company dissolve, the book value per common share indicates the dollar value remaining for common shareholders after all assets are liquidated and all debtors are paid”(Investopedia).
Market Value is the market capitalisation (sp x number of o/s shares) of a publicly traded company. It represents the perception of investors about the company's worth according to the stock market.
“The market value of a company will usually exceed its book valuation. The stock market assigns a higher value to most companies because they have more earnings power than their assets. It indicates that investors believe the company has excellent future prospects for growth, expansion, and increased profits.
It is unusual for a company to trade at a market value that is lower than its book valuation. When that happens, it usually indicates that the market has momentarily lost confidence in the company. It may be due to business problems, loss of critical lawsuits, or other random events. In other words, the market doesn't believe that the company is worth the value on its books. Mismanagement or economic conditions might put the firm's future profits and cash flows in question” (Investopedia)
Largo’s book value per share = C$5.59 or US$4.15 for the most recently interim ending 2023-03-31
LGO TMX closing price = C$5.58 (2023-05-15)
LGO Nasdaq closing price = US$4.14 (2023-05-15)