Sentences with phrase «book value stocks»

Potential downside risk protection makes low price - to - book value stocks attractive.

-LSB-...] the earnings of high price - to - book value stocks.

-LSB-...] Robert Vishny Contrarian Investment, Extrapolation and Risk (1994) and The Brandes Institute's Value vs Glamour: A Global Phenomenon (2008)-- low price - to - book value stocks outperform higher priced stocks and the market in general.

They found that low price - to - book value stocks out perform, and in rank order (the cheapest -LSB-...]

In fact, low price - book value stocks have underperformed high price - book value stocks over shorter time periods.

The lowest price to book value stocks earned 6.24 % more, on an annualized basis, than the high price to book stocks across the entire time period (1927 - 2010); they continued to earn higher annual returns (5.44 %) than the high price to book value stocks between 1991 - 2010.

Two areas worthy of further study are low price - to - book value stocks and low price - to - tangible book value stocks.

The findings are uniform: lower price - to - book value stocks tend to outperform higher price - to - book value stocks, and at lower risk.

As the various studies we have discussed recently demonstrate — Roger Ibbotson's Decile Portfolios of the New York Stock Exchange, 1967 — 1984 (1986), Werner F.M. DeBondt and Richard H. Thaler's Further Evidence on Investor Overreaction and Stock Market Seasonality (1987), Josef Lakonishok, Andrei Shleifer, and Robert Vishny Contrarian Investment, Extrapolation and Risk (1994) and The Brandes Institute's Value vs Glamour: A Global Phenomenon (2008)-- low price - to - book value stocks outperform higher priced stocks and the market in general.

This time around I'm pitting a small portfolio of near Graham net nets against a small portfolio of ultra-low price - to - book value stocks.

As we discussed yesterday in Testing the performance of price - to - book value, various studies, including Roger Ibbotson's Decile Portfolios of the New York Stock Exchange, 1967 — 1984 (1986), Werner F.M. DeBondt and Richard H. Thaler's Further Evidence on Investor Overreaction and Stock Market Seasonality (1987), Josef Lakonishok, Andrei Shleifer, and Robert Vishny Contrarian Investment, Extrapolation and Risk (1994) and The Brandes Institute's Value vs Glamour: A Global Phenomenon (2008) all conclude that lower price - to - book value stocks tend to outperform higher price - to - book value stocks, and at lower risk.

They found that low price - to - book value stocks out perform, and in rank order (the cheapest decile outperforms the next cheapest decile and so on).

They are perhaps best known for the Contrarian Investment, Extrapolation, and Risk paper, which, among other things, analyzed low price - to - book value stocks in deciles (an approach possibly suggested by Roger Ibbotson's study Decile Portfolios of the New York Stock Exchange, 1967 — 1984).

While it is more difficult to ascertain the sustainability of high growth, it doesn't mean a high growth, high PE and high price to book value stock is not a «value» investment.

Not exact matches

That means weighting stocks in an index by qualities such as earnings, cash flow, dividends and book values rather than the sheer size of their market caps.

His last open letter to shareholders makes the point clearly about investing in creating value — «Berkshire's gain in net worth during 2016 was $ 27.5 billion, which increased the per - share book value of both our Class A and Class B stock by 10.7 %.

During that earlier period, American business earned an average of 11 percent or so on equity capital employed and stocks, in aggregate, sold at valuations far above that equity capital (book value), averaging over 150 cents on the dollar.

Berkshire Hathaway's results were hit in 2011 from setbacks in its insurance and housing - related businesses, but growth in its book value handily outpaced the broader stock market.

It's been more than four years now since the giddily titled book Go Canada: The Coming Boom in the Toronto Stock Market and How to Profit From It hit store shelves, advising its hopeful readers that within a decade the Toronto Stock Exchange would more than double in value to 30,000 points.

Value investors might be tempted by U.S. financial stocks now that they're trading close to book vValue investors might be tempted by U.S. financial stocks now that they're trading close to book valuevalue.

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.

In contrast, when a deal is structured around stock, the assets on the books must be amortized at their value to the seller, which is likely to be far less than the total sale price.

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.

Indeed, its stock trades at around book value.

Typically, when stocks of big banks trade at prices substantially below book value, the bank is in some kind of distress, or banks broadly in the market are facing structural problems.

If you purchase shares of our common stock in this offering, you will experience immediate and substantial dilution of $ in the net tangible book value per share, assuming an initial public offering price of $ per share (the midpoint of the price range set forth on the front cover of this prospectus).

This means movements in book value typically move in tandem with movements in stock price, at least over the long run.

Therefore, if you purchase shares of our Class A common stock in this offering, you will experience immediate dilution of $ per share, the difference between the price per share you pay for our Class A common stock and its pro forma net tangible book value per share as of September 30, 2010, after giving effect to the issuance of shares of our Class A common stock in this offering.

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.

4In fact, one book, Dow 36,000, which was published in 1999 shortly before the stock market peaked, argued that «fair value» for the Dow Jones Industrial Average should be 36,000 because the appropriate risk premium for the equity market versus Treasury bonds should be zero.

b) Price to Economic Book Value measures the growth expectations embedded in the prices of the stocks in sector / industry.

Dilution in pro forma net tangible book value per share to investors purchasing shares of our Class A common stock in this offering represents the difference between the amount per share paid by investors purchasing shares of our Class A common stock in this offering and the pro forma as adjusted net tangible book value per share of our Class A common stock immediately after completion of this offering.

At the same time, bank stocks are regularly trading in excess of three times book value.

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.

Remember that the key justification for not paying dividends was that the earnings were being retained for stock buybacks and increases in book value for the benefit of shareholders.

Write - downs or hidden liabilities can send the stock price below book value, as can a company earning a negative return on invested capital (ROIC).

Figure 1 shows this value - destroying behavior in action for GE (GE) by comparing between the amount of money spent buying back shares and the price to economic book value (PEBV), a measure of the growth expectations embedded in the stock price.

Rather than telling prospective investors, depositors or others that they're worth, banks can use Enron - style «mark - to - model» accounting to say that their stock's book value is whatever in - house model - builders want to say they're worth, on whatever blue - sky assumptions they choose.

A ratio used to compare a stock's market value to its book value.

Price - to - book value: a ratio used to compare a stock's market value to its book value.

It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.

Valuation: Price - to - book ratio compares a stock's market value to the value of total assets less total liabilities (book value).

For public utilities, the debt should not exceed twice the stock equity at book value.

Figure 1 shows how, until 2009, Wal - Mart's stock price was well above its economic book value, which equals the value of Wal - Mart's existing cash flows.

In terms of valuation, Valeant Pharmaceuticals stock currently trades at TTM price to sales value of 0.58 x and price to book value of 1.40 x.

The initial public offering price is substantially higher than the pro forma net tangible book value per share of our common stock immediately following this offering based on the total value of our tangible assets less our total liabilities.

The anticipated initial public offering price of our common stock is substantially higher than the net tangible book value per share of our outstanding common stock immediately after this offering.

Dilution is the difference between the offering price per share and the pro forma net tangible book value per share of our Class A common stock immediately after the offering.

The stock currently trades at a price to economic book value ratio of 0.8.

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.