If the stock is
priced at book value this is true.
I would avoid the asset class, unless you buy into the non-traded funds, which
price at book value.
Not exact matches
Other financial firms that focus on wealth management, like Northern Trust and T. Rowe
Price, trade
at premiums to their
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.
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.
This means movements in
book value typically move in tandem with movements in stock
price,
at least over the long run.
At its current
price of $ 55 / share, HLF has a
price to economic
book value (PEBV) ratio of 1.4.
At its current valuation of ~ $ 67 / share, HLF has a
price to economic
book value ratio (
price - to - EBV) of 1.2 That ratio means that the market expects only 20 % growth in NOPAT for the remainder of HLF's existence.
At its current
price, General Electric has a
price to economic
book value (PEBV) ratio of 2.7.
At its current
price of $ 105 / share, HAS has a
price - to - economic
book value (PEBV) ratio of 1.2.
At $ 12 / share Western Digital had a
price to economic
book value (PEBV) ratio of 0.8.
At its current
price of $ 142 / share, CLX has a
price - to - economic
book value (PEBV) ratio of 1.2.
This is one reason why the S&P 500 trades
at a
price /
book value ratio of nearly 6, compared to a historical norm below 2.0: companies have created virtually no underlying shareholder
value by retaining earnings rather than paying them out as dividends.
Best of all,
at its current
price of $ 35 / share, Oracle has a
price - to - economic
book value (PEBV) ratio of 0.9.
At its current
price of $ 39 / share, Southwest has a
price to economic
book value (PEBV) ratio of 0.7.
At its current
price of $ 35 / share, CSCO has a
price - to - economic
book value (PEBV) ratio of 0.9.
At its current
price of $ 117 / share, NPK has a
price - to - economic
book value (PEBV) ratio of 1.0.
At its current
price of $ 65 / share, Thor has a
price to economic
book value (PEBV) ratio of 1.1.
At its current
price of $ 41 / share, VIAB has a
price to economic
book value ratio (PEBV) of 0.5, which implies that the market believes its NOPAT will permanently decline by 50 %.
At its current
price of $ 59 / share, TGT has a
price - to - economic
book value (PEBV) ratio of 0.5.
At its current
price of $ 23 / share, KLIC has a
price - to - economic
book value (PEBV) ratio of 0.7.
At its current
price of $ 14 / share, SCS has a
price - to - economic
book value (PEBV) ratio of 0.8.
At its current
price of $ 77 / share, OMC has a
price - to - economic
book value (PEBV) ratio of 0.8.
At its current valuation of ~ $ 7 / share, OCLR has a
price to economic
book value (PEBV) of just 0.7, which implies that the market expects OCLR's after - tax operating profit (NOPAT) to permanently decline by 30 %.
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.
At its current
price of $ 53 / share, Wells Fargo has a
price to economic
book value (PEBV) ratio of 1.1.
But shares
valued at a premium to
book already
price in rehabilitation.
Since the late 1940s «concealed
value» in the form of real estate carried
at outdated
book values that reflect low acquisition
prices was a major factor behind corporate raiding, mergers and acquisitions.
The stock currently trades
at a
price to economic
book value ratio of 0.8.
At its current
price of $ 38 / share, it has a
price - to - economic
book value (PEBV) ratio of 1.0.
Benoit's
book decimates the notion of a normal distribution of stock
price changes and all of the models that rely on it: the efficient - market hypothesis, CAPM,
Value at Risk [VAR] etc..
At its current valuation of ~ $ 500 / share, AZO stands out with a
price to economic
book value ratio of only 1, which implies that the company will never grow NOPAT from its current level.
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.
While the current
price / peak - earnings multiple is already
at an elevated level above 18, what I'll call the «P / E equivalent» multiples on other fundamentals are: 21 on the basis of
book values, nearly 23 on the basis of enterprise
value / EBITDA (which factors in the increasing share of debt on corporate balance sheets), over 25 on the basis of revenues, and 29 on the basis of dividends (largely because dividend payout ratios remain relatively low even on the basis of normalized earnings).
At its current
price of $ 63 / share, Cheesecake Factory has a
price - to - economic
book value (PEBV) ratio of 1.1.
At its current
price of $ 63 / share, FL has a
price to economic
book value (PEBV) ratio of only 1.3.
At its current
price of $ 48 / share, Hawaiian Holdings has a
price to economic
book value (PEBV) ratio of 0.6.
At its current
price of $ 46 / share, Verizon has a
price to economic
book value (PEBV) ratio of 0.7.
At its current
price of $ 19 / share, GNTX has a
price - to - economic
book value (PEBV) ratio of 1.1.
At its current
price of $ 47 / share, HURC has a
price - to - economic
book value (PEBV) ratio of 1.0.
The purchase
price is approximately 2.5 times the net
book value of CDI as
at October 31, 2014.
At its current
price of $ 105 / share, WINA has a
price - to - economic -
book value (PEBV) ratio of 1.1.
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.
At its current
price of $ 79 / share, SIG has a
price - to - economic
book value (PEBV) ratio of 0.8.
At its current
price of $ 55 / share, SYY has a
price - to - economic
book value (PEBV) ratio of 1.0.
In the nordic market Nordea (the nordic bank) is trading
at a
price to
book value close to 1.0 which is okey for one of the best banks in the world (ref stress tests).
A figure that was subsequently increased repurchase share
at prices no higher than 20 percent premium to
book value.
We composed a blend of five key valuation metrics — including forward
price - to - earnings ratios and
price - to -
book value — and examined how strong the relationship was between starting valuations — or valuations
at the time of purchase — and the variability of subsequent U.S. dollar returns over time.
At its current
price of ~ $ 32 / share, Cisco has a
price to economic
book value (PEBV) of just 0.9, which implies that the market expects a permanent 10 % decline in after - tax profit (NOPAT).