I'm a novice investor that's looking at a UK bank. It's market cap according to popular websites such as Hargreaves Lansdowne and Yahoo finance is £12 billion (bn). The current share price is £1.04.
The bank has 6.04 bn shares outstanding. At a current price of £1.04, to me that's a market cap of £6.6bn.
Also, looking at the bank's balance sheet, it has £43bn in shareholder funds. I'm sitting here thinking if I'm right (which I'm probably not) that if you bought all of the outstanding shares, you'd get £43bn of assets for £12bn.
- Why is there a discrepancy between the market cap and outstanding shares x current price?
- What am I missing, surely you can't buy £43bn of assets for £12bn?
I'm assuming that not all of their loans will go to zero because of COVID-19.