Investors are always looking for stocks which are undervalued and price below book value is a good measure to track companies which might be worth looking at.
Let’s first understand what is the book value of a stock. Book value should ideally include everything has such as stocks, bonds, inventory, machinery, real estate etc.
Companies with lots of machinery would have large book values. It is used as a number 1 figure while evaluating such companies.
A simple way is to just divide the current value of the stock by its stated book value per share, which will give us price-to-book value.
For more information Call us ✆ +91 9111-179961 or Visit Dollar Advisory
Let’s first understand what is the book value of a stock. Book value should ideally include everything has such as stocks, bonds, inventory, machinery, real estate etc.
Companies with lots of machinery would have large book values. It is used as a number 1 figure while evaluating such companies.
A simple way is to just divide the current value of the stock by its stated book value per share, which will give us price-to-book value.
For more information Call us ✆ +91 9111-179961 or Visit Dollar Advisory
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