Is a company under-valued if its book value is more than its stock price ?

It could be an indicator that the company is undervalued. But book value, like someone else said, is an accounting entry. ets are valued on the books at their original cost, minus depreciation and amortization. And there are several different methods of depreciation. Its somewhat arbitrary. Demand for the ets may decline or they may become obsolete. So they may be written down to a lower value. Also a company may have a significant amount of goodwill on the balance sheet. The goodwill could become impaired and disappear. Book value can disappear with the the stroke of a pen or a key stroke. The market value may be saying the ets arent worth the value they are recorded at on the books.