What is the price to book ratio? - MoneyWeek Investment Tutorials
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- čas přidán 21. 10. 2010
- The price-to-book value ratio is calculated by dividing the current share price by its book value (all fixed and current assets minus current and long-term liabilities) per share (book value divided by the total number of shares in issue).
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best teacher I've found
best teacher for investment ratio I found!
Thanks Tim. Your videos make everything really simple to understand, and give a great overview of entire topics.
great explanation! , giving the formula, explaining the formula and providing some good samples
Thank you very clear and concise . And a little bit of analysis at the end perfect.
i could not understand this anymore better..thank you
Thank you so much for sharing this useful data! Greatly appreciated!
I speak Spanish but i watch videos in English because in Mexico almost there is not videos in youtube about this
You're a crack Professor!
Clear explanation with examples to strengthen my understanding. Bravo!
Thank you ! I enjoy and learn from this video.
Nice job explaining this. I found it helpful.
thank you so much for sharing this data ! Greatly appreciated.
How easy was it to understand. I am stunned a bit. Thank you.
You made this easy to learn.
thanks a lot sir for uploading such an informative videos. its of great help to me and its adding more to my knowledge. thank you very much sir
Two thumbs up. Great content and verifiable by those in the know.
Tom, What if after the Price to Book Ratio for an asset based company, we would then also use a potential increase of asset price from past figures, to figure out a better standing?
Love the videos!
What a hero this man is. He explained something Brealey in his book couldn't help me understand in 30 pages
Thanks so much from Spain.
Thanks sir. Great & informative
Very clear and useful instructions
Man, you really love Tesco.
really helpful......need more
Is this ration same thing as total company capitalisation divided by total book value? For example, for Tesco, it will be 28923.3 divided by 16642 = 1.738.
Thanks a ton Tim :)
is the number of shares issued equivalent to the outstanding shares?
Thank you
Very useful sir....
A very good,thanks a bunch!!
Excellent!
Here in march 2021, always learning! Thanks for your teaching.
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Bless your heart
Can you make one video on top line and bottom line growth?
I would really appreciate it if this channel had organised playlists... Please consider
Thank you … love the breakdown…for someone who just started to invest individually…this brings fresh thinking to me
JFJjBoy - yes a low price book is no guarantee of a bargain. However it's a useful starting point especially combined with a decent dividend yield and a low p/e ratio (see my other videos!). Cheers. Tim.
thanks mate
On vanguard the US EQUITY index fund has price to book ratio of 1.6x. I don't understand this because clearly the s&p is overvalued. Yet looking at the figure of 1.6x, you'd think you are getting a good deal. Please explain if you have the time, thank you. Also price to earnings ratio, is a high number better than a lower number?
what happen if the price to book result is in negative??
I know how I can buy my targeted stock :) Thanks
Couldn't one assume that a
But when the price to book is below 1, could it also be a bad sign? In other words, could it mean that the company isn't prosperous at all? Thanks
where did you go? you need to bring this knowledge back to CZcams!
Thak you :)
can't beat that one
Bravo!
Thank you so much for explaining in detail, very helpful in understanding. I am a mature (age 35 going on 36) BSc Accounting and Finance International (Black American) student.
Date stamp: 29apr20 (Would have been my late Mommy's 70th birthday today)
Theoretically then, there's no need to "calculate" your BV figure then - simply take the total equity figure from the balance sheet. Since Assets = OE + Liabilities and your BV requires total assets - total liabilities...
Yes?
No?
whats your view over shares in Blackberry in long run ?
LONG!!!!
Amazing!
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isn't b.v = assets - liabilities/no of shares issued???
yes it is, is the net income/number of shares, and the ratio is a percentage
I have also come across terms like CAPE...
Why would a company who didn't initially need cash go public? Why would they sell a part of their company thus loosing total profits (as a percentage of profits go to the shareholders now instead of themselves) if they did not need the cash to being with?
This muggle is smart asf
So Basically if the BV is one cent over the share price it is a bargain but if it is one cent under the share price its overpriced, when looking at bargains for assets definitely not the whole company.
You can find the details in Google Finance.Current : 1,223.01 million shares
Munger and Buffett have said Book Value is not a factor to consider and that earnings is what drive value. Do you agree?
ironically, I came here to seek further understand of investment trust I wanna buy and with that conclusion I knew right away I should own this real estate investment trust.
The Group is one of the biggest prop developer in the nation, it has construction segments as well as strong branding and market presence, the REIT is currently trading at merely 1.2x its BV. The premium of merely 20% is still justified considering its branding, not the best but acceptable D/Y to my risk appetite at 5.x% (range:3 - 7%), no past financial losses with dividend is paid constantly every quarterly for the past few years.
626 million
why are you not teaching CFA coerces make money out of them ?
just found a stock with 0.9 p/b
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This made the penny drop for me
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Great content, but please invest in sound quality. It sounds like you're recording this in a bathtub.
Terry Cabeen hahaha
The two biggest curse/swear words... cheap or expensive. there is no such thing as that
your voice surrounds too much have flat voice while explaining