Episode 6 - Stock Valuation: Understanding Book Value for Beginners
The Foundations of the price-to-book (P/B) financial metric
Get That Bread - A Value Investing Podcast · Stephen Lee & Mark
Audio is streamed directly from the publisher (pinecast.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
Episode 6 - Stock Valuation: Stock Valuation: Understanding Book Value for Beginners
A Video Version of this episode: http://bit.ly/2C4xqHP
1) Book value IS NOT market value!!! Book value, or equity, is an accounting construct that at times diverges from economic reality. (So just because a company is trading below book value doesn't mean it's necessarily cheap; and vice versa, not all stocks trading above 1x book value are expensive).
2) Here's the computation for P/B: (method 1) = Market capitalization / equity (method 2) = price per share / book value per share.
CONNECT WITH US Instagram: www.instagram.com/getbread_official Facebook: www.facebook.com/justmakinbread Twitter: https://twitter.com/justmakinbread
Credits: Music: [Cosimo Fogg (201)] https://soundcloud.com/cosimo-fogg/ja...... [VII 초] https://soundcloud.com/viisecs/lo-fi... [rubensoxo] https://soundcloud.com/rubensoxo/chil... [dBrewin'] https://soundcloud.com/darian-brewer-...
Find out more on the Get That Bread - A Value Investing Podcast website.