What defines Public Equity Value compared to Book Equity Value?

The distinction between Public Equity Value and Book Equity Value primarily revolves around how each value is determined and what it signifies. Public Equity Value is determined by the market and reflects the current trading price of a company's shares multiplied by the total number of outstanding shares. This reflects real-time market conditions, investor sentiment, and other economic factors influencing the stock price.

On the other hand, Book Equity Value is based on accounting principles. It is the value of a company’s assets minus its liabilities as recorded in its financial statements. This value does not account for market fluctuations and is primarily based on historical cost rather than current market sentiment.

Thus, the key difference highlighted in the correct answer is that Public Value reflects market prices while Book Value reflects accounting values. This understanding is crucial in investment banking as it helps assess a company's market performance versus its financial statement strength. The correct answer brings out this distinction clearly.