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Topic: Price-to-book ratio


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 Book value - Wikipedia, the free encyclopedia
In the price/book value ratio the "book value" is simply the shareholders' equity from the "books", or, the balance sheet.
However, in the price/book ratio, the "book" value is most often not directly any assets or tangible assets, but all balance sheet assets minus all balance sheet liabilites, the balance sheet shareholders' equity.
The book value of an asset or group of assets is sometimes the price at which they were originally acquired (historic cost), in many cases equal to purchase price.
en.wikipedia.org /wiki/Book_value   (267 words)

  
 SA Monitor Help
Value Equity Funds universe includes all equity funds where price is a major determinant of stock selection, and the investment focus is on the price:earnings ratio, price:book ratio, dividend yield, or asset value.
Value Equity Accounts universe includes equity accounts and composites of accounts where price is a major determinant of stock selection, and the focus is on the relative price/earnings ratio, price/book ratio, dividend yield, or asset value.
If the index is capitalization-weighted, each stock in the index is weighted in proportion to its total market value (market price per share times outstanding shares) relative to the total market value of all issues in the index.
datalab.morningstar.com /epiper/Help.asp   (267 words)

  
 How Important Is PE Ratio
Companies’ PE ratio are one piece of the puzzle, and have to be taken with other factors, such as price-to-book ratio, sales projection, long term interest rate and inflation.
By comparing it to the PE ratio of companies in the same industry, the PE provides a metric to judge how reasonable the share price of a company is. Companies with lofty PE must grow their earnings consistently to meet the investors’ high expectations.
High PE ratios are usually associated with growth stocks, and frequently flag the question — is it worth the risk to participate in a bright future, or maybe the share price is overvalued.
www.arabnews.com /?page=6§ion=0&article=49301&d=2&m=8&y=2004&pix=business.jpg&category=Business   (779 words)

  
 Peg Ratio
The price-to-book ratio of 0.82 stacks up well next to Barnes and Noble's 1.8 and Borders' 1.55, the PEG ratio of 0.88 is beneath the industry average, and with...
With a forward price/earnings-growth, or PEG, ratio of 2.99, the stock trades at a premium to the industry's PEG of 2.78, according to Zacks Investment Research...
Look, too, for companies that have a so-called ``PEG'' ratio -- which is a company's price earnings ratio divided by its annual earnings growth rate -- at or...
finance.za-news.com /new/Peg_Ratio.html   (779 words)

  
 PEG ratio - Wikipedia, the free encyclopedia
One reason investors may prefer the PEG ratio over measures such as earnings, revenues, tangible assets, or book value to price (market cap) is that such measures do not account for a company's potential for growth.
The PEG (price, earnings, growth) ratio compares the PE (price/earnings) ratio to the growth rate, which can be either historical PE ratios and growth rates or estimated future rates.
PE ratio / earnings (or earnings per share) growth in parts-per-hundred (%) (year-over-year trailing or over future years).......
en.wikipedia.org /wiki/PEG_Ratio   (362 words)

  
 Encyclopedia: PEG ratio
One reason investors may prefer the PEG ratio over measures such as earnings, revenues, tangible assets, or book value to price (market cap) is that such measures do not account for a company's potential for growth.
The PEG (price, earnings, growth) ratio compares the price/earnings ratio to the growth rate, which can be either historical P/E and growth rates or estimated future rates.
If one would buy a portfolio of ten stocks with a PEG ratio of 0.5 and another portfolio of ten stocks with a PEG ratio of 1.5, there is not much to suggest whether the 0.5 portfolio will outperform the 1.5 portfolio over the next 1, 5, or 10 years.
www.nationmaster.com /encyclopedia/PEG-ratio   (362 words)

  
 Value By The Book
Price-to-book value (P/B) is the ratio of market price of a company's shares (share price) over its book value of equity.
If a company is trading for less than its book value (or has a P/B less than 1), it normally tells investors one of two things: either the market believes the asset value is overstated, or the company is earning a very poor (even negative) return on its assets.
This number is defined as the difference between the book value of assets and the book value of liabilities.
www.investopedia.com /articles/fundamental/03/112603.asp   (1049 words)

  
 Welcome to Cost Per Mile
This book is a "MUST READ" for anyone in trucking whether it be an old veteran or new to the field.
This little book has helped so many truckers just as it will help you become a better operator.
"How can those guys operate for that price?" Or "They can't make any profit at hauling it at that !" "Do they know something I don't ?" Truth be told, they do.
www.costpermile.com   (1049 words)

  
 Underperforming small-cap funds have strong upside potential
i) In Canada, the relative price/book and price/sales ratio of the Nesbitt Burns Small Cap Index versus the TSE 300 is at the lowest level since Nesbitt Burns started recording these statistics.
From a price/sales standpoint, the Russell 2000 is undervalued relative to the SandP 500, trading at a 26% discount.
That may not change immediately, but the downside risk to investors in small-capitalization funds is now historically low and the potential for gains is historically high.
www.globefund.com /archive/commentary/19990129/weekly.html   (641 words)

  
 USATODAY.com - You can bank on value stocks
The bank has a price-to-book ratio of just 1.67, showing that its price is much more close to the value of its assets than many other companies.
Value stocks are those that have low prices relative to the value of the company's assets, or its book value.
Value stocks are often stocks you've never heard of or those you'd think someone would be crazy to invest in.
www.usatoday.com /money/perfi/columnist/krantz/2005-11-17-value-stocks_x.htm   (708 words)

  
 Value Investing Investments Textbook
He originated the so-called dividend discount model, utilized earnings capitalization as well as price to book ratio and dividend yield, and presented free cash flow.
His discussion about the convergence of market price and intrinsic value of a stock is more accurate.
These excerpts and quotes are considered to be "fair use" as interpreted by The Chicago Manual of Style: The Essential Guide for Writers, Editors, and Publisher, 14th edition, 1993.
www.numeraire.com /textbook.htm   (708 words)

  
 Price Book Value Ratios
The price-book value ratio of a stable firm is determined by the differential between the return on equity and the required rate of return on its projects.
The book value of equity is the difference between the book value of assets and the book value of liabilities.
The measurement of the book value of assets is largely determined by accounting convention.
pages.stern.nyu.edu /~adamodar/New_Home_Page/lectures/pbv.html   (1917 words)

  
 Glossary of Terms: In
Given that price expresses the ratio between a given quantity of a commodity and its equivalent in money, it is self-evident that inflation manifests the falling value of money, rather than the increasing value of all other commodities.
As the price of gold shot up to about US$500, other commodities would have to reflect the same drop in the value of money, and this is exactly what happened: oil, wheat, cocoa, wool, silver, etc., etc., all experienced explosions in their value.
It is frequently said that Adam Smith used the invisible hand metaphor in reference to how the market price was determined, but this is a later interpretation of the concept which does not reflect Adam Smith’s view of market price.
www.marxists.org /glossary/terms/i/n.htm   (4082 words)

  
 IHF - Glossary
This is the net difference between the number of shares of company stock purchased by officers and directors and the number of shares sold by officers and directors during the preceding six months.
This is the net difference between the number of shares of company stock purchased by institutions and the number of shares sold by institutions in the last three months reported by each institution.
Book Value Per Share, MRQ ($ per share)
irsite.ashford.com /ihf/glossary.html   (3849 words)

  
 Daily Trendwatch - November 7, 2002 - The Efficiency Ratio
for a summary I created on this book's key points), he notes that the efficiency of a trend is calculated by dividing the net movement over a certain time period (I use 20 trading days), divided by the summation of the absolute value of the day-to-day price changes over the same time period.
For example, one of my best-trending put winners in recent months occurred when I bought puts on Halliburton when the stock broke under its -30 Efficiency Ratio reading on June 21 at 16.25.
This would mean that the ratio of net movement over combined movement was 20/20, or 1.00 (I plot it as +100 for positive efficiency).
www.bigtrends.com /document.jsp?documentid=899   (3849 words)

  
 Live Market Price Stock
Stock Market Bookstore.com - Best Price Financial Investing Books Store - Stocks Book - Finance Options - Futures - Comm
The price/earnings (PE) ratio of the S and P 500 is near the level of the March 2000 Bull Market...
Live economics and gold news-wire featuring gold price and daily market report from Centennial Precious Metals for investors in gold coins and bullion.
www.spreadtrade2win.com /7/live-market-price-stock.html   (527 words)

  
 Price To Sales Ratio
The price-to-sales ratio is 0.70 and price to book is 1.2.
With a hefty price-to-sales ratio as well, upside potential may be somewhat limited, and there isn't much room for error here.
However, with estimated debts of £570m, Premier Foods is valued on a price to sales ratio of 1.3, after its debts are reduced by £130m by the proceeds of the...
finance.za-news.com /new/Price_To_Sales_Ratio.html   (716 words)

  
 Financial Management (Financial Management Association): Leverage Ratios, Industry Norms, and Stock Price Reaction: An Empirical Investigation of Stock-for-Debt Transactions - Statistical Data Included
In conclusion, the leverage ratio research suggests that the market views a firm's industry average book value of debt to market value of equity ratio as a wealth maximizing norm.
They suggest that a firm's industry average book value of debt to market-based equity ratio is a valid proxy for an optimal leverage ratio.
In general, the earlier leverage ratio research views a target DE as implying some sort of wealth-maximizing DE that is consistent with the existence of an optimal DE.
www.findarticles.com /p/articles/mi_m4130/is_2_28/ai_56750609   (1478 words)

  
 Maybank’s takeover offer too low, says MNI board
The independent adviser for the MNI takeover offer, Malaysian International Merchant Bankers Bhd (MIMB), has evaluated Maybank's offer from a variety of angles such as MNI's traded market price, its price-to-earnings ratio, price-to-book ratio and dividends, and has advised shareholders to accept Maybank's offer as it was reasonable.
Noting that no new composite insurance licences would likely be issued, because the industry is undergoing a consolidation, the MNI board's opinion is that the offer price does not reflect the premium for such a licence should another party attempt to acquire one.
MIMB said MNI's share price was trading substantially below Maybank's offer before the bid and the price-to-earnings multiple of Maybank's offer was above the range of other companies that were comparable with MNI.
biz.thestar.com.my /news/story.asp?file=/2006/1/17/business/13132619&sec=business   (641 words)

  
 Book : John Neff on Investing
John Neff lists his main ingredients in picking stocks as a low price-earnings ratio (p/e), a 7% minimum earnings growth rate, a desirable dividend yield, and a favorable "total return ratio." To limit downside risk, Neff considers fundamentally strong companies and industries, and cyclical companies with extremely attractive price-earnings ratios.
In John Neff on Investing, he explains how he scoured the daily list of stocks hitting new lows, the "dusty rag and bone shop of the market," to find out-of-favor companies with low price/earnings ratios, those growing faster than seven percent a year, that paid generous dividends.
John Neff low price-earnings strategy begins with a "total-return ratio" formula.
www.investitor.net /books/val/john-neff-on-investing.htm   (1295 words)

  
 Economic Value Added, Economic Profit and Market Value - Part I
The market value of a firm’s equity divided by its book value is none other than the price/book value ratio, or multiple.
For example, a price/book multiple of 2.0 would indicate that the market is valuing a firm’s equity at 1x greater than the shareholders’ historical investment.
In other words, %MVA is the multiple over a firm’s book value of equity that is indicated by the market value of its equity.
www.bizval.com /Publications/elaw/archive/elaw0104.htm   (2541 words)

  
 MSN Money - Guru Investor's 5/25/2005 Journal-- Strategy Lab
This strategy requires a company be in the top 20% of the market based on the book/market ratio (which is the inverse of the price/book ratio).
This could be a good time to buy this company at a reasonable price.
The Piotroski strategy requires that cash from operations for the most current fiscal year be greater than net income for the most current fiscal year.
a02.moneycentral.msn-ppe.com /Content/Stratlabs/Strategy1.asp   (2541 words)

  
 FinanceAsia Article
At this price, Fubon is paying of price of around 18 times this year's Taipei Bank earnings and a price to book ratio of 1.7.
Fubon will offer a value of NT$35.5 for every Taipei Bank share and will use the 30 day average of its own stock for the exchange ratio.
Fubon was the first to formally turn itself into a financial holding company when the new law was passed in November 2001.
www.financeasia.com /Accessories/faPrintStory.cfm?objectID=924C3543-A5D3-11D6-81E50090277E174B   (2541 words)

  
 post-money valuation Definition
Here we look at several valuation methods, factoring in price/earnings ratio, PEG, dividend yields, book value, price/sales ratio, and return on equity.
A company's valuation just after its latest round of funding, equal to the number of shares outstanding times the share price from the latest financing.
This investment strategy involves evaluating a stock by examining the company, especially its operations and its financial condition.
www.investorwords.com /3759/feedback.cgi?3759   (159 words)

  
 Dogs of the Dow - Dividend Yield
Related Terms - Dividend - Dogs of the Dow- Earnings Yield - PE Ratio- Dividend Declaration Date - Dividend Payment Date - Dividend Record Date - Price to Book Ratio
Dividend yield is equal to the annual dividend per share divided by the stock price.
For example, if the price of a stock is $20 per share and that particular company has an annual dividend of $1, then the dividend yield would be $1 / $20 or 5%.
www.dogsofthedow.com /Dividend_Yield.htm   (196 words)

  
 BW Online June 23, 2004 Constellation Energy: Lots of Spark
We attribute Constellation's weak year-to-date performance and below-average price-earnings ratio, price-to-book, and price-to-cash-flow multiples to investor uncertainty about expanding energy-merchant operations and the company's ability to sustain EPS growth.
Shares of electricity supplier Constellation Energy Group (CEG; recent price, $38.00) haven't generated much of a return for investors thus far in 2004, with the stock down 3.2% through June 18.
We look for output from Constellation's nuclear facilities to increase annually through 2008, due to the June, 2004, acquisition of the 495-Mw Ginna nuclear power plant for $408 million, as well as investments to increase the capacity of Constellation's three nuclear facilities by another 276 megawatts by 2007.
www.businessweek.com /investor/content/jun2004/pi20040623_3837_pi008.htm   (1335 words)

  
 Brill's Mutual Funds Interactive - Marla's Musings
At the end February, stocks in Windsor II's portfolio had an average price/earnings ratio of 19.4, and an average price/book ratio of 3.0.
Although the performance of Windsor I and Windsor II differed from year to year, their ten-year track records were about evenly matched as 1997 approached.
Vanguard spokesman Brian Mattes says Freeman has brought down the average size of the companies in the portfolio since he took over, and that Windsor "is now more mid-cappy than it was before."
www.brill.com /marla3.html   (1335 words)

  
 About BSE \ Indices
The Exchange also disseminates the Price-Earnings Ratio, the Price to Book Value Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices.
The BSE National Index was renamed as BSE-100 Index from October 14, 1996 and since then it is calculated taking into consideration only the prices of stocks listed at BSE.
Since then, BSE has come a long way in attuning itself to the varied needs of investors and market participants.
www.bseindia.com /about/indices.asp   (600 words)

  
 E*TRADE
The Large Cap Growth Index includes the components ranked 1-750 by full market capitalization and that are classified as "growth" based on six factors: (i) projected price-to-earnings ratio (P/E), (ii) projected earnings growth, (iii) price-to-book ratio, (iv) dividend yield, (v) trailing revenue growth, and (vi) trailing earnings growth.
The Large Cap Growth Index is a float-adjusted market capitalization weighted index that reflects the shares of securities of the large cap portion of the Dow Jones Wilshire 5000 Composite Index actually available to investors in the marketplace.
The Large Cap Value Index is a float-adjusted market capitalization weighted index that reflects the shares of securities of the large cap portion of the Dow Jones Wilshire 5000 Composite Index actually available to investors in the marketplace.
prospectus-express.newriver.com /pnet/get_template.asp?clientid=etrade&fundid=86330E109&CN=NSC124&template=1   (13869 words)

  
 Stock Market - Enteleky
Value investors have been defined through the years as individuals who search for stocks with a low price-earnings ratio, low price-to-book ratio,...
The Intrinsic Partner: The stock market is closely followed by various groups including businesses, economists and investors.
Learn about the Stock Market with EduStock: How it works, What is a stock, what are mutual funds, etc...
www.enteleky.com /stockM.html   (281 words)

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