Georgia Bard's Corner Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Georgia Bard's Corner

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: PitBull who wrote (2879)	5/28/1998 10:17:00 PM
From: Kurt N	Read Replies (1) of 9440

Don't rely on price/book value ratio alone to make a decision as to whether an investment is over-under/valued. If you do use it, use it on an apples to apples basis and not an apples to oranges (ie. use it on companies in the same sector). Here are some links: invest-faq.com invest-faq.com Book value per share is the theoritical amount that one would receive if the company were liquidated. The asset valuations reflect historical costs ($10,000 of land bought in 1920's is worh a lot more than $10,000) and/or depreciation. (computer that is 1 year old loses half of it's value, but with a depreciation of 7 years it's asset value is higher than what it could be sold for). To use the ratio, The lower the price/book value per share the more under-valued a company is. Your numbers for zzzzzz and xxxxxx should be: zzzzzzz Price/book value = .35 / .11 = 3.18 xxxxxxx Price/book value = .05 / .40 = .125 Kurt

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next