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if the market value (MV = 4)exceeds The book value (BV =2 ). What does it...

if the market value (MV = 4)exceeds The book value (BV =2 ). What does it mean?

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If the market value has exceeded the book value, it will mean that the market participants are valuing the company higher than its book value, so market value will always be determined after introduction of a large number of market participants so market participants are feeling that the value of the company is higher than the book value because the book value are mostly comprising of the historical values so market participants are trying to discount the futuristic value of the company and they are providing a higher market price than the book value.

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