Source: The American Association of Individual Investors; * «Campbell Soup Companies» meant those with a long history and that Schloss considered stable and well known Overall, Schloss screened for companies ideally trading
at discounts to book value, with no or low debt, and managements that owned enough company stock to make them want to do the right thing by shareholders.
Editor's note: A previous version of this story incorrectly stated that Morgan Stanley shares trade at a premium to its book value and that Goldman Sachs» stock trades
at a discount to its book value.
The average dividend yield will be high, and shares may be selling
at a discount to their book value.
Kelly Services is also selling
at a discount to book value as is Cross Country Healthcare (NASDAQ: CCRN).
With this strategy, value investors try to find companies that the market has overlooked and that are selling
at a discount to their book value.
Many sell
at a discount to book value.
Even if you find stocks trading
at a discount to book value, there's no reason to believe that anyone else will agree with you... later.
On a different note, Berkshire Hathaway probably shouldn't trade
at a discount to book value but I'm not sure it deserves its current 1.5 x (approximately) multiple either.
In fact, with a debt to total assets ratio of approximately 98 percent, virtually any bid General Growth receives in today's environment will be
at a discount to the book value of its properties, says Suzanne Mulvee, senior real estate economist with Property & Portfolio Research, a Boston - based research firm.
Not exact matches
The firm attributes 30 %
to 40 % of its profits
to the U.S., and trades
at a bigger - than - average 75 %
discount to tangible
book value.
The company is trading
at 35 %
discount to its tangible
book value.
This large New York — based insurer is cheaper than its Canadian counterparts, trading
at about a 20 %
discount to book value.
These 10 trade
at a
discount to comparable North American stocks within their industries, based on an evaluation of their trailing 12 - month price -
to - earnings and price -
to -
book values.
As a result AIG consistently trades
at a substantial
discount to book value.
While most companies trade either
at a premium
to book value or a
discount to book value based on their industry, these premiums tend
to remain range - bound.
The stock trades
at just about 11 times its expected earnings for next year — and it trades
at the widest
discount -
to -
book value of the major banks.
Since 1995 the average ratio between Russell 1000
Value and Growth price - to - book (P / B) ratios has been 0.45, i.e. value typically trades at a 55 % discount to gr
Value and Growth price -
to -
book (P / B) ratios has been 0.45, i.e.
value typically trades at a 55 % discount to gr
value typically trades
at a 55 %
discount to growth.
They've been selling properties
at deep
discounts to already written - down
book values, but
at prices high enough
to more than justify today's depressed share price.
Meanwhile, metal stocks are selling
at an even greater
discount, my calculations show, with the S&P Metal and Mining Select Industry Index trading
at close
to book value and barely 11x earnings.
Based on the price -
to -
book (P / B) metric, since 1995,
value stocks, as defined by the Russell 1000 Value Index, have typically traded at around a 55 % discount to growth st
value stocks, as defined by the Russell 1000
Value Index, have typically traded at around a 55 % discount to growth st
Value Index, have typically traded
at around a 55 %
discount to growth stocks.
Selling
at a significant
discount to our estimate of intrinsic
value and
at only a modest premium
to tangible
book value, we think News Corp offers a compelling risk / reward profile.
Finally, looking
at valuation, European banks traded
at a material
discount to tangible
book value, one standard deviation3 below their historic forward price - earnings multiple, and near a 20 - year low relative
to global banking peers as the year came
to a close.4 We are also finding select financial sector
values in Asia, in both mature, under - earning banking markets like South Korea and Singapore, as well as underpenetrated, growth - oriented markets like China (particularly in insurance) and India (particularly in banking).
The car had 68,000 thousands miles on it, and it had a few dents big and large scratches; so I was able
to get it
at a huge
discount that was way below blue
book value, because no one else wanted her.
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But some other authors prefer
to set large trade
discounts to pursue offline distribution and would prefer
to keep the retail
discounts to a minimum (or none
at all) so they can maintain a certain
value ratio for their
book.
In fact,
at a 75 %
discount to growth on price -
to - tangible
book value — two standard deviations below the average long - term level —
value hasn't been this cheap relative
to growth since the peak of the» dotcom» bubble.2 But, is this unpopularity permanent?
While most companies trade either
at a premium
to book value or a
discount to book value based on their industry, these premiums tend
to remain range - bound.
I've never bought shares, though, unless they were still trading
at a significant
discount to the thrift's
book value.
If we write the PP&E
to zero and carry everything else
at book value, HRT is worth around $ 2.67, which, while not enough of a
discount to get excited about, still offers a 16 % margin of safety.
Still, Boyar feels Bank of America shares sell
at a significant
discount to book value.
But it also trades
at a 28 %
discount to book value and is diversified.
In any case, if you're looking
to benefit from the
discounts to book values that home builders are trading
at, XHB is not for you.
I bought into E-L Financial, trading
at a 38 %
discount to book value and producing very good earnings.
When you want
to book a flight on an airline Chase doesn't partner with, you can
book through the Ultimate Rewards shopping portal, pay with points
at a straight
value of one cent per point and get a 20 percent
discount off the cash
value of your travel for going through Chase.
What the price -
to -
book - based analysis hints
at, however, are the merits of qualities that all
value investors share, namely that you focus on qualities about a business as opposed
to external factors and that you pay attention
to market prices only in so far as they present the opportunity
to buy shares
at large
discounts to what you conservatively estimate are their inherent worth.
As you can see, WGI trades
at a meaningful
discount to both its estimated liquidation
value and its
book value.
I couldn't help but take a small position in the company's TARP warrants when the shares were trading
at a 50 %
discount to stated
book value.
And even if it had, it's obvious (from peer ratings, even today) it would now be
valued at a substantial
discount to book value.
But what this advice fails
to take into consideration is the asking price: while HURC trades for its
book value, HDNG trades
at about a 60 %
discount to its
book value.
(My
book, Findependence Day, is aimed
at just these types of investors who want
to build low - cost portfolios of ETFs
at discount brokerages, but who also
value good advice).
With the Chase Sapphire Preferred, Chase gives you the option of
booking travel on Chase's Ultimate Rewards travel portal
at a 20 %
discount (for 1.25 cents
value per point), or transferring
to travel program partners
at a 1:1 ratio, which may allow you
to squeeze more
value out of your points.
[NB: i) Church House's Argo stake is held by the Deep
Value Investments Fund, managed by Jeroen Bos — if you haven't read it already, I can highly recommend his recent
book «Deep
Value Investing», ii) XXX Capital Management is a well - known European hedge fund, which hasn't publicly disclosed a holding in Argo
to date, hence the redaction — Argo management are obviously aware of their shareholding & support, and iii) the letter was based on a GBP 14p share price & a higher GBP / USD rate —
at the current 13.875 p price and exchange rate, Argo now trades
at a 36 %
discount to net cash and investments, and a 47 %
discount to net tangible assets.]
This
book introduces «
value investing» which treats stocks just like cars or clothes — buy stocks
at a
discount to their intrinsic
value.
If an insurer earns 5 % on
book value — it should trade
at a
discount to book.
With share price
to tangible
book value trading
at such a large
discount, the margin of safety is sizeable.
This might offer shareholders an opportunity, for example,
to realize a major portion of EIIB's current NAV
at book value — rather than the 52 %
discount implied by the current share price.
Look
at all the variables you used when you bought the stock —
discounted cash flow, price -
to - earnings, price -
to - cash - flow, net asset
value, price -
to -
book — and use that information
to decide what the upside is if the stock rises and what you stand
to lose if it drops.
Most importantly, it is selling
at a substantial
discount to its
book value and net asset
value.
Your estimate for each year is running
at a substantial
discount to book value.
Not only was I buying in
at a fabulous
discount to book value, but I was getting close
to a guaranteed 20 % yield
to boot!