In terms of price-to-book value
(P/BV) ratios, on the other hand, diversified stocks are priced at 50-percent discount to the median P/BV multiples of single-segment stocks.
Bottom line, balance sheet-based valuation metrics such as price-to-book value
are very applicable in some instances where accounting values approximate the prices that could be fetched for the assets in a sale, but even in those cases where it is a secondary consideration, book value can help serve as a check on the validity and sustainability of reported earnings.
Kotak Mahindra Bank today commands a price-to-book value
of 5.2 times.
CTBC Financial will buy 7.55 billion newly issued stock through a private placement and will become the Thai company's major stakeholder at about 2.2 baht per stock, at a price-to-book value
(PB) ratio of 1.67.
Jean-Paul Sabet, deputy head of international retail banking at the bank, said, 'We have looked at different options and we were able to get with BGZ an acquisition price, a price-to-book value
, at a very reasonable level.
The price-to-book value
(P/BV) ratio is used to compare a company's market price to its book value.
Similarly, price-to-book value
(P/B/V) ratios of the DFMGI and ADSMI were at two times and 1.9 times, respectively, compared to 1.5 times for the MXEF.
Under its proposal, BPI would have taken over PNB at a price-to-book value
of about 1.6 times.
Damac's price-to-book value
is more expensive than that of Dubai's biggest developer, Emr Properties, even though Emr is deemed less risky.
''With price-to-book value
ratio falling to and below 1.0 times (on the TSE's First Section), there are investors who are buying stocks as they are cheap,'' said Fumiyuki Nakanishi, general manager at SMBC Friend Securities Co.
At current value, the price-to-book value
of the company was 6.85.
We first calculate the repurchase-to-total asset ratio and then rank firms by 1) dividend payout ratio, 2) price-to-book value
ratio, 3) debt asset ratio, 4) return-on-asset ratio, and 5) total assets.