Question

Alphabet's market cap (total dollar value of all stock in the hands of investors) is currently...

Alphabet's market cap (total dollar value of all stock in the hands of investors) is currently about $900 billion, while the value of the net assets on its balance sheet totals about $200 billion. Explain one reason why these numbers are different. Please be specific. Limit your response to two sentences or less.

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Answer #2

Ans:

Market cap for Investors is $900 Billion but Net Assets is about $200 Billion. One of the reason behind that can be the past growth rate of the company, because of that even though the book value per share is very low, investors are ready to pay higher for this stock because of its high growth rate which shows future viability.

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