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Showing posts with label P/B. Show all posts
Showing posts with label P/B. Show all posts
Sunday 17 December 2017

"Cheap" classic value companies versus Quality (growing intrinsic value) companies

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Classic value metrics such as P/B, P/E or DY do not represent intrinsic value.  To illustrate this, Grantham says when he poses the follo...
Sunday 30 April 2017

Multiples based on Comparables

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This method compares relative values estimated using multiples to determine whether an asset is  undervalued,  overvalued or  fairly...

Price Multiples - Relative Valuation

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Price multiples are ratios that compare the price of a stock to some sort of value. Price multiples allow an analyst to evaluate the re...
Saturday 29 April 2017

Primary aim of management is to increase the book value and the market value of the company.

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The primary aim of management is to increase the book value and  market value of the company. Book Value Book value (shareholde...
Sunday 25 December 2016

Valuing companies with little or no earnings or with very volatile and highly unpredictable earnings.

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Companies with no earnings or very volatile and highly unpredictable earnings Some companies, like high tech startups, have little, if an...

Price to Book Value Ratio

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Price to Book Ratio P/BV ratio = Market price of common stock / Book Value per share Unless the market becomes grossly overvalued (199...
Tuesday 19 July 2016

The Five Rules for Successful Stock Investing 10

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Valuation – The Basics Even the most wonderful business is a poor investment if purchased for too high a price. To invest successfully m...
Wednesday 3 July 2013

Alternative to Discounted Cash Flow Method

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What do you use if you don't want to or can't use the discounted cash flow (DCF) method of valuing a stock?   There are other met...
Tuesday 13 December 2011

QUICKIES: Seven investment myths you should not fall for

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Text: Prerna Katiyar | ET Bureau Pick this stock, it's trading at 52-week low.' 'That stock is a multi-bagger, trading at ...
Saturday 18 December 2010

****Investment Valuation Ratios

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This ratio analysis tutorial looks at a wide array of ratios that can be used by investors to estimate the attractiveness of a potential or ...
Sunday 3 October 2010

Short cuts for finding value

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Companies and shares are worth the present value of the future cash they can generate for their owners.  This is a rather simple statement,...
Saturday 15 May 2010

Book value is a good proxy for the value of a banking stock.

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Because banks' balance sheets consist mostly of financial assets with varying degrees of liquidity, book value is a good proxy for the v...
Sunday 27 December 2009

Measurement in the Balance Sheet

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Book values measurement determines the price-to-book ratio. To evaluate the price-to-book ratio, we must understand how book values are meas...
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The Market Price-to-Book and Intrinsic Price-to-Book Ratio

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The balance sheet equation corresponds to the value equation.    The value equation can be written as:   Value of the firm = Value of eq...
Saturday 12 September 2009

Using Book Value in Making Investment Decisions

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Going by the Book Using Book Value in Making Investment Decisions by Virginia B. Morris Heading the list of questions investors sometimes st...