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Episode 6 - Stock Valuation: Understanding Book Value for Beginners
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.
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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.
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By Stephen Lee & Mark
4.6
1414 ratings
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.