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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Komentáře • 79

  • @leggoego
    @leggoego Před 10 lety +39

    best teacher I've found

  • @yanickdurand3255
    @yanickdurand3255 Před 7 lety +12

    best teacher for investment ratio I found!

  • @varunkapur5640
    @varunkapur5640 Před 9 lety +8

    Thanks Tim. Your videos make everything really simple to understand, and give a great overview of entire topics.

  • @keitharaneta3465
    @keitharaneta3465 Před 4 lety +8

    great explanation! , giving the formula, explaining the formula and providing some good samples

  • @ASMRMoto
    @ASMRMoto Před 4 lety +3

    Thank you very clear and concise . And a little bit of analysis at the end perfect.

  • @anupamaantony3642
    @anupamaantony3642 Před 6 lety +2

    i could not understand this anymore better..thank you

  • @tinnguyen2219
    @tinnguyen2219 Před 4 lety +2

    Thank you so much for sharing this useful data! Greatly appreciated!

  • @jesusruiz523
    @jesusruiz523 Před 3 lety +1

    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!

  • @engkeelau7736
    @engkeelau7736 Před 3 lety +1

    Clear explanation with examples to strengthen my understanding. Bravo!

  • @yew108
    @yew108 Před 8 lety +2

    Thank you ! I enjoy and learn from this video.

  • @gilltim5711
    @gilltim5711 Před 7 lety +1

    Nice job explaining this. I found it helpful.

  • @tinnguyen2219
    @tinnguyen2219 Před 5 lety +2

    thank you so much for sharing this data ! Greatly appreciated.

  • @shobinyad6643
    @shobinyad6643 Před 4 lety +1

    How easy was it to understand. I am stunned a bit. Thank you.

  • @richierich429
    @richierich429 Před 11 lety +1

    You made this easy to learn.

  • @prajitprasad7206
    @prajitprasad7206 Před 11 lety +1

    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

  • @Tweetogreggieb59
    @Tweetogreggieb59 Před 4 lety +1

    Two thumbs up. Great content and verifiable by those in the know.

  • @nicolaswilcken7532
    @nicolaswilcken7532 Před 6 lety

    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?

  • @aaronchow2366
    @aaronchow2366 Před 9 lety +3

    Love the videos!

  • @shaykhriyadh
    @shaykhriyadh Před 3 lety

    What a hero this man is. He explained something Brealey in his book couldn't help me understand in 30 pages

  • @manuxgame
    @manuxgame Před 4 lety +1

    Thanks so much from Spain.

  • @faezmohtar947
    @faezmohtar947 Před 4 lety +1

    Thanks sir. Great & informative

  • @stockholmsbakverkse
    @stockholmsbakverkse Před 5 lety +1

    Very clear and useful instructions

  • @Commando303X
    @Commando303X Před 6 lety +4

    Man, you really love Tesco.

  • @mukherjeetabla
    @mukherjeetabla Před 13 lety +1

    really helpful......need more

  • @surmeshdadhwal799
    @surmeshdadhwal799 Před 10 lety

    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.

  • @xaxxox
    @xaxxox Před 13 lety +1

    Thanks a ton Tim :)

  • @judbolynespada6423
    @judbolynespada6423 Před 7 lety

    is the number of shares issued equivalent to the outstanding shares?

  • @bjk7797
    @bjk7797 Před 5 lety +1

    Thank you

  • @vinothkumar5267
    @vinothkumar5267 Před 4 lety +1

    Very useful sir....

  • @samsonndirangu1158
    @samsonndirangu1158 Před 4 lety +1

    A very good,thanks a bunch!!

  • @catherinepham3999
    @catherinepham3999 Před 4 lety +1

    Excellent!

  • @SksToTheMini14
    @SksToTheMini14 Před 3 lety

    Here in march 2021, always learning! Thanks for your teaching.

    • @moneycontent2568
      @moneycontent2568 Před 3 lety

      Thanks for commenting, I’d rather advise you look up to investing and making huge profit in Bitcoin with José Smith he’s currently managing my crypto portfolio and making great return’s.

  • @DizzyyDabin
    @DizzyyDabin Před 6 lety +1

    Bless your heart

  • @shrenik85
    @shrenik85 Před 8 lety

    Can you make one video on top line and bottom line growth?

  • @phomzaraboon7688
    @phomzaraboon7688 Před 2 lety

    I would really appreciate it if this channel had organised playlists... Please consider

  • @Rio-by1eh
    @Rio-by1eh Před 2 měsíci

    Thank you … love the breakdown…for someone who just started to invest individually…this brings fresh thinking to me

  • @MoneyWeekVideos
    @MoneyWeekVideos Před 13 lety

    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.

  • @bluekeys4938
    @bluekeys4938 Před 4 lety +1

    thanks mate

  • @easternise
    @easternise Před 2 lety

    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?

  • @Dlebron28
    @Dlebron28 Před 6 lety

    what happen if the price to book result is in negative??

  • @ricklavie7315
    @ricklavie7315 Před 4 lety +1

    I know how I can buy my targeted stock :) Thanks

  • @iliasasdf
    @iliasasdf Před 12 lety

    Couldn't one assume that a

  • @JFJjBoy
    @JFJjBoy Před 13 lety

    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

  • @sachinM3005
    @sachinM3005 Před 3 lety

    where did you go? you need to bring this knowledge back to CZcams!

  • @Icecream-dv8oz
    @Icecream-dv8oz Před 5 lety +1

    Thak you :)

  • @joeegbert9808
    @joeegbert9808 Před 6 lety

    can't beat that one

  • @chandrakiranraju
    @chandrakiranraju Před 4 lety

    Bravo!

  • @blackamericanlesbianprofes4357

    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)

  • @MrKassie78
    @MrKassie78 Před 3 lety

    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?

  • @bilal008
    @bilal008 Před 10 lety

    whats your view over shares in Blackberry in long run ?

  • @mikulasbrzon1249
    @mikulasbrzon1249 Před 3 lety

    Amazing!

    • @moneycontent2568
      @moneycontent2568 Před 3 lety

      Thanks for commenting, I’d rather advise you look up to investing and making huge profit in Bitcoin with Mr José Smith he’s currently managing my crypto portfolio and making great return’s.

  • @WilliamRai
    @WilliamRai Před 6 lety

    isn't b.v = assets - liabilities/no of shares issued???

    • @XxIzhtarxX
      @XxIzhtarxX Před 5 lety

      yes it is, is the net income/number of shares, and the ratio is a percentage

  • @easternise
    @easternise Před 2 lety

    I have also come across terms like CAPE...

  • @Chris180Z
    @Chris180Z Před 11 lety

    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?

  • @JimVarneyHaHa
    @JimVarneyHaHa Před 3 lety

    This muggle is smart asf

  • @rohandrummond6175
    @rohandrummond6175 Před 12 lety

    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.

  • @vikkigupta2003
    @vikkigupta2003 Před 11 lety

    You can find the details in Google Finance.Current : 1,223.01 million shares

  • @stacyliddell5038
    @stacyliddell5038 Před 5 měsíci

    Munger and Buffett have said Book Value is not a factor to consider and that earnings is what drive value. Do you agree?

  • @xxxxxGhostBoyxxxxx
    @xxxxxGhostBoyxxxxx Před 7 lety

    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.

  • @CeleronS1
    @CeleronS1 Před 11 lety

    626 million

  • @forexcitycapital4293
    @forexcitycapital4293 Před 5 lety +1

    why are you not teaching CFA coerces make money out of them ?

  • @aaro3455
    @aaro3455 Před 5 lety

    just found a stock with 0.9 p/b

  • @aliahmd956
    @aliahmd956 Před 11 lety

    iiiiiiiiiiiiiii

  • @thylacine622
    @thylacine622 Před 5 lety +1

    This made the penny drop for me

    • @moneycontent2568
      @moneycontent2568 Před 3 lety

      Thanks for commenting, I’d rather advise you look up to investing and making huge profit in Bitcoin with José Smith he’s currently managing my crypto portfolio and making great return’s.

  • @parvezbdjsr
    @parvezbdjsr Před 11 lety

    It kind of seems like a boring way to make money though don't you think? Effortless Money Builder is different, and its really easy. Google the term Effortless Money Builder and you'll see for yourself...

  • @ItsMeMan
    @ItsMeMan Před 4 lety

    D BAG

  • @terrycabeen
    @terrycabeen Před 8 lety +13

    Great content, but please invest in sound quality. It sounds like you're recording this in a bathtub.

  • @Kelvinyau317
    @Kelvinyau317 Před 5 lety

    The two biggest curse/swear words... cheap or expensive. there is no such thing as that

  • @akashgupta-uh5rr
    @akashgupta-uh5rr Před 7 lety

    your voice surrounds too much have flat voice while explaining