Results in Table 3 are fairly straightforward; the price to book ratio
is positively and significantly related to having a board chairperson that is also the CEO; the number of insiders and doctors on the board share this relationship.
The acquisition represents a price to book ratio
The average price to book ratio
for Oregon/Washington commercial banks is 1.
It is calculated for each stock using a multiple regression model of earnings stability, estimated earnings growth, relative return on equity, and relative price to book ratio
As we have reported on options news before, homebuilders trade off of price to book ratios
, and price to liquidity ratios.
Under Cullen's investment strategy, the portfolio manager seeks out mid-sized and large cap companies that possess three key elements: attractively low valuations evidenced by low price to earnings ratios and low price to book ratios
, dividend yields which are greater than the S&P 500 as this has historically served to offer downside protection, and lower than average dividend payout rates that are growing.
Buying stocks with low price to earnings ratios, low price to book ratios
and high dividend yields is a key to the Fund's five-star rating," says Cullen.