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Strategies & Market Trends : From the Trading Desk

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To: KZAP who wrote (2479)1/30/1998 4:10:00 PM
From: steve goldman  Read Replies (1) of 4969
 
Depends on the company, the industry, current market conditions, market sentiment...

ie...a software company with little manufacturing equipment and other hardware, revenues might be more important than the book value...yet an industrial is more focused on bookvalue.

On average, I would guess that most companies trade 2 to 5 times book....3 and 4 being a bit...depends though.

Also, a company could have a great balance sheet, trade at .5 x book but have no future earnings potential...would you buy that company. you would have to sell all the assets atleast .5 on the dollar to make money.

Regards,
Steve@yamner.com
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