7 March 2008 Note: *) PBV:
price to book value (book value) Source: Data Consult/ICN
Because of the dichotomous grouping of companies, the total sample of "brand value" and "zero brand value" companies allow for tests of the representational faithfulness of balance sheets, as represented by variations in
price to book value ratios.
If one accepts the premise that certain types of companies which have high
price to book value multiples have balance sheets that are less representationally faithful than the balance sheets of companies with low
price to book value multiples, then there are some apparent conclusions that can be drawn from this study.
Sorouh currently trades at a price earnings of 7x and a
price to book value of 0.
3 billion(a), and stated its belief that the Company is undervalued, as compared to international competitors based on TEV/EBITDA and
Price to Book Value multiples.
This equity retirement greatly skews both return on average equity (66% in 2007) and
price to book value (10 times).
The banking sector in particular has witnessed stellar performance on the Karachi Stock Exchange 100 Index, with current trading range of
price to book value multiples of two to four times.
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.
Schlumberger's book equity declined substantially during this period, and its stock trades at a very high
price to book value of 4.
The acquisition
price to book value will be approximately 3.
We identify stocks that can be acquired at a low
price to book value in an effort to buy hard assets at a discount.
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.
