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Its a debatable matter. For companies which does not have readily available market value i.e. pvt. companies we can accept the above statement in affirmative. But for companies that have their market value of equity available this statement is wrong.
Similarly in situations of NPV or Freecash flow analysis where we need market value of equity to calculate the discount rate preference is given to market values. However if market values are not available then we can use book value as alternative.
A book value is usually all the time away from the market value of shares. this could not be one of the best methods of the evaluations. this could be applied on all other fixed asets also because some of them has the same criteria
Mostly no, we will figure out this if we liquidated the company and compared the net proceeds with the owners equity book value.
No. Book value is at best an estimate, an estimate of what equity holders tangibly own in a company. In theory if a company were to pay off all liabilities and distribute the remaining assets investors would receive book value. In reality this never happens, and when it does it's a messy affair, at times what's distributed is far in excess of book value, and other times far below.
