He likes candidates whose price to book
is under the market's average.
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.
According to the report, "PNB is the cheapest Florida community bank on a price to book
value basis, trading at a 55% discount to its peers, or at 1.
The primary reason is a transaction value on a price to book
basis that is outside the boundary of reasonableness when compared to precedent transactions coupled with open market opportunities to sell above the offer price.
The acquisition represents a price to book
ratio of 4.
When I'm looking in the tech sector, I'm not going to be looking at things like price to book
, but I will look at price to cash flow and a PEG ratio, or an earnings surprise (that's always a good indicator).
The average price to book
ratio for Oregon/Washington commercial banks is 1.
The acquisition price to book
value will be approximately 3.
Meeting with management and assessing a number of criteria beyond sheer price-to-earnings -- including price to book
value, enterprise value to cashflow -- Brody's group makes its investment decision based on long-term investment horizon.
The fund managers will seek issues that display "catalytic value" - companies combining attractive valuation on such traditional measures as price to book
and price to earnings, with improving fundamentals such as sales or earnings growth.
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