Price / book (or P / B) ratio is calculated by dividing the market price of a company's outstanding stock by its book value (total
assets of a company less liabilities) and then adjusting for the number of shares outstanding.
The total
assets of a company less total liabilities and not including intangible items such as goodwill.
Not exact matches
Perth - based oil and gas
company Antares Energy has received a fresh $ US300 million offer from an undisclosed party for its Permian Basin oil and gas
assets in Texas,
less than six months after it backed out
of a previous sale agreement.
Long delayed by the Securities and Exchange Commission (SEC), Title III was the most controversial provision
of the JOBS Act because it allowed non-accredited investors — generally defined as individuals with
less than $ 1 million in
assets who earn
less than $ 200,000 per year — to invest in private
companies as shareholders.
Companies ripe for takeovers often have some
of the following traits: • a small capitalization; • a market price
less than book value; • a «weak» management team; • ownership
of undervalued
assets or important patents.
I know first hand
of one
of the world's most celebrated wealth management
companies that charges clients roughly 1 %
of assets each year, and then parks a great deal
of the money into S&P 500 index funds with expense ratios
of 1 % to 1.25 % (compared to
less than 0.10 % for an industry leader such as Vanguard).
Glaucus claims that Blue Sky inflates the value
of its investments, and that its published fee - earning
assets under management figure is not the $ 4 billion the
company presents, but
less than $ 1.5 billion.
A shareholder's equity is the total
of all
assets less the total
of all liabilities
of the
company, divided by the number
of shareholder's shares.
The purchase price
of each Share will be (i) not
less than the net
asset value per Share (the «NAV Per Share»)
of the
Company's common stock (as determined in good faith by the board
of directors
of the
Company or a committee thereof, in its sole discretion) immediately prior to the Expiration Date (as defined in the Offer to Purchase)(the date
of repurchase) and (ii) not more than 2.5 % greater than the NAV Per Share as
of such date, plus any unpaid dividends accrued through the expiration date
of the Tender Offer.
Graham recommended [in 1970] that an industrial
company should have at least $ 100 million
of annual sales, and a public utility
company should have no
less than $ 50 million in total
assets.
A lot
of it may also be that people are still treating this as a highly indebted, risky, poorly operated, and marginally profitable
company that it is without looking deeper at the
assets that it will still hold after receiving the $ 1.7 billion from Itochu, and how new Dole will now be a much healthier and
less risky
company
Based on government valuations,
companies deciding to renew their concessions under MP 579, such as Eletrobras, would be forced to receive indemnity payments as much as 50 %
less than the book value
of their
assets.
Why would you only buy things that were 65 % or
less of NCAV where net current
assets are mostly inventory, where the
company lost money in 4
of the last 10 years, etc..
Still, with
less than $ 100 million in debt due before 2020, Barrick executives said the
company is shifting to a growth strategy, focusing on Nevada and the Dominican Republic, and will no longer sell
assets in order to reduce its billions
of dollars in debt.
A foreign stock fund will typically invest 80 % to 100 %
of its
assets in stocks
of companies outside the United States, whereas an international stock fund might have 50 % or
less of its holdings in foreign stocks and the remainder in US stocks.
After giving the
company credit for the expected ramp - up in production from large current investments, the
company is trading at
less than 9 times earnings — too low considering that approximately a quarter
of those earnings come from the very high - return trading segment and the rest come from long - lived and well - run mining
assets.
«However, the impact on the
company has been
less than that upon the industry generally, due in part to the quality
of our
assets, but also because
of the ongoing yearly maintenance and improvement to those
assets.»
«The visit, which lasted for
less an hour, was part
of routine efforts to ascertain the state
of the
assets of the publishing
company which is subject
of subsisting interim forfeiture order.
Assuming a
company's working capital (current
assets less current liabilities) is conservatively stated, Graham and Rea felt that a firm could reasonably be expected to be sold off for the value
of these
assets.
Seeks capital appreciation by focusing on undervalued mid-and large - cap
companies, with a significant portion
of assets in foreign securities and, to a
lesser extent, distressed securities and merger arbitrage.
Typically, these bonds are issued by
companies with
less than stellar credit and are often tied to specific pieces
of capital equipment or
assets.
Or, the equity investors that have control
of the
company might pursue a unprofitable strategy that encumbers the
assets of the firm, leaving the bondholders with a
less valuable entity for their debt claims.
You'll probably end up with
less guaranteed income (or a smaller stash
of assets) using this tactic than had your
company offered a partial lump sum - and - annuity option.
Less common are
asset management services, and owning insurance
companies, but some
of the bigger firms do those.
FocusShares, meanwhile, attracted a mere $ 100 million in
assets, and with an average fee
of 0.15 % that's $ 150,000 in revenue — probably
less than what some
of the
company's employees earn.
Jay Hill: We try to buy
companies at two thirds or
less of a conservative estimate
of what Benjamin Graham called intrinsic value, with intrinsic value defined as what the business would be worth in an acquisition or by estimating the collateral value
of its
assets and / or cash flow.
``... if the
company were actually liquidated the value
of the
assets would most probably be much
less than their book value as shown on the balance sheet.
If funds invest as we advise, sticking with well - established, mostly dividend - paying
companies and spreading their
assets out across most if not all
of the five main economic sectors, they will tend to lose a lot
less than the market indexes in periods when the indexes fall sharply.
If a
company is trading for
less than its book value (or has a P / B
less than one), it normally tells investors one
of two things: Either the market believes the
asset value is overstated, or the
company is earning a very poor (even negative) return on its
assets.
The first being Benjamin Graham's net current
asset value method that looks for
companies trading for
less than two - thirds their current
assets less all their liabilities, which is a rough measure
of their liquidation value.
What's more, Graham's goal was to get a dollar
of assets for
less than 50 cents, purchasing only
companies that were on sale.
Fund management
companies are considered «large» or «small» groups depending on whether they have
assets under management in the United States
of more or
less than $ 34.5 billion, respectively.
The Large Cap Fund normally invests at least 80 %
of its net
assets in equity securities, consisting
of domestic common and preferred stocks
of large capitalization («large - cap»)
companies — a
company, at time
of purchase by the Fund, with a market capitalization greater than or equal to the
lesser of $ 10 billion or the median market capitalization
of companies in the S&P 500 Index.
Analysts, however, don't pay much attention to the absolute number, because the replacement values are likely overstated (or, to put it another way,
companies could replace their current
assets with
assets of comparable condition for
less than the stated replacement cost).
Graham loved «net - nets ``, stocks trading substantially
less than the current
assets of the
company minus all its liabilities.
* The Board believes that the offer price
of $ 1.20 per share is approximately the
company's current net cash value
less wind down costs, but does not reflect the value for the
company's other
assets, including its AV411 pain and addiction program and rights to future payments from Genzyme Corporation.
«The Fund invests 60 % to 70 %
of its
assets in dividend - paying and, to a
lesser extent, non-dividend-paying common stocks
of established, medium - size and large
companies.
For those that haven't read me much, the deadly trio
of too much leverage, illiquid
assets, and liquid liabilities is what causes most corporate defaults
of financial
companies, not
lesser issues like mark - to - market accounting.
That means $ 1.4 billion
of the fund's
assets are invested in these large
companies, providing a very stable foundation for the investor in their consistent earnings and dividends, while smaller
companies that carry much
less weight in the index and are even further oversold provide potential for capital appreciation.
For an investment
company or similar entity, the total current value
of assets held
less the amount
of outstanding liabilities, divided by the number
of shares outstanding.
(When a higher rate
of return on pension
assets is assumed
companies can set
less money aside, boosting earnings.
A large quantity
of current
assets, especially if they consist
of inventories, costs in excess
of billings, or receivables from
less than creditworthy customers, probably can not help the common stock
of a
company which can not meet its obligations to its creditors.
Yet, had you focused exclusively on net nets (Graham's famous approach whereby one only buys stock in
companies where the sum
of current
assets less all liabilities exceeds the market value), you would have cashed in 29.4 % annually in the same period.
Technically yes, but many
companies within the fund make up
less than 0.001 %
of the fund's $ 201 billion in
assets under management, hardly enough to significantly affect the funds performance, as shown below.
The total
of a
company's
assets less any liabilities.
It is not uncommon to see informed investors, such as a
company's own officers and directors or other corporations, accumulate the shares
of a
company priced in the stock market at
less than 66 %
of net current
asset value.
Common characteristics associated with stocks selling at
less than 66 %
of net current
asset value are low price / earnings ratios, low price / sales ratios and low prices in relation to «normal» earnings; i.e., what the
company would earn if it earned the average return on equity for a given industry or the average neti ncome margin on sales for such industry.
On a similar note I'm also becoming
less and
less enthused with Winthrop management's handling
of their liquidation; its been almost a year now since the
company's remaining
assets were put in a liquidating trust and we shareholders have seen little in the way
of property sales and liquidating distributions.
We seek to construct a discounted portfolio
of stocks consisting
of companies which due to the geographic and sector diversification
of the underlying
assets are
less likely to display high correlations to the market.
Allows for additional tax - deductible contributions to be made by the
company should the rate
of return on plan
assets be
less than 7.5 % a year