This is why I pay attention to growth
in book value per share, ex accumulated other comprehensive income, plus dividends, rather than earnings.
All measures like the growth in tangible
book value per share become considerably more complicated to evaluate when a company grows via a series of mergers.
Companies that are liberal in their accounting may have good looking earnings, but growth
in book value per share can be quite poor.
The first filter looks for companies with a current return on equity (earnings per share over the latest 12 months divided
by book value per share as of the latest quarter) greater than the post-World War II average of 14 %.
Find out why bank stocks usually trade
below book value per share, and understand how trading activities increase banks» risk exposures and affect valuation.
Given your belief that Berkshire's intrinsic value continues to exceed its book value with the difference continuing to widen over time, are we at a point where it makes sense to consider buying back stock at a higher break point that Berkshire currently has in place and would you ever consider stepping in buying back shares that did dip down below 1.2
times book value per share even if that prior years» figure had not yet been released?
The ratio of a company's stock price to its
economic book value per share (PEBV) sends a clear message about market expectations for the stock and can be a very powerful tool for investors.
Given your belief that Berkshire's intrinsic value continues to exceed its book value with the difference continuing to widen over time, are we at a point where it makes sense to consider buying back stock at a higher break point that Berkshire currently has in place and would you ever consider stepping in buying back shares that did dip down below 1.2 times
book value per share even if that prior years» figure had not yet been released?
Tangible
book value per share Book value (also known as equity, shareholders» funds, or net asset value) is the value of all a company's assets, minus its liabilities.
Fully
convertible book value per share assumes that you invest your dividends in the common stock (without taxation), and thus compound your gains through reinvestment, taking account of dilution.
BXMT executed this offer at 1.2 x price - to - book, capturing a favorable price for the stock and driving a $ 0.41 increase in
book value per share during the quarter.
[04:12:01] GREGG WARREN: When Berkshire authorized the share repurchase program, originally ended up buying back shares at prices no higher than 10 percent premium to the firm's most
recent book value per share.
The projected 10 - year rate of return (calculated using the current price and the projected price in 10 years based on the sustainable growth rate,
projected book value per share and earnings per share, and historical average price - earnings ratio) is greater than or equal to 15 %
The historical cost accounting principle, which tends to understate certain asset values, and the supply and demand forces of the marketplace generally push stock prices
above book value per share valuations.
Buybacks would marginally
lower book value per share, but that's pretty irrelevant — FBD's intrinsic value is far higher, and I calculate a buyback would improve that value significantly.
For example, I suspect the M&A value of Nomadic Dairy is significantly higher than its current book value — this value differential could be pretty meaningful to what will be a sub-40 million mkt cap company & likely explains why management's obviously comfortable buying back shares at a premium to the current (under --RRB-
stated book value per share.
The divergence in the P / BV (price divided
by book value per share) is even wider: 5.19 for growth and 1.74 for value.
Therefore, if you purchase our common stock in this offering, you will incur immediate dilution of $ in the net tangible
book value per share from the price you paid.
A significant decline in the fair values of our larger investments may produce a material decline in our consolidated shareholders» equity and our
consolidated book value per share.
Even as the shares dipped down below the 1.2 times book value threshold during both January and February of this year, if you base it on a buyback price calculated on Berkshire's
book value per share at the end of 2015.
Since the inflation and interest rates in the example are roughly in line with the current environment and the average return on equity is 12 %, Muhlenkamp is willing to pay two
times book value per share or 17 times earnings per share for companies with a 12 % return on equity.
Each is present for different reasons with each carries the unique feature of superior growth
in book value per share.
Phrases with «book value per share»