Really, the wide berth that a lot of investors are giving BofA now can be seen in its share price to tangible book value ratio compared to other banks.
Tronox trades for less than book value, and at a 45% discount to its five-year average price-to-book value ratio.
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This share price results in a price to economic book value ratio of 1.0, implying no future growth in NOPAT.
That price translates into a price to economic book value ratio of 0.5, which means the market is predicting a permanent 50% decline in its profitability, an awfully pessimistic assumption.
This valuation gives it a 0.8 price to economic book value ratio, implying that the market expects a permanent 20% decline in NOPAT for SNDK. In the short term it is possible that SNDK might experience a decline in NOPAT, but over the long term it is hard to imagine this company experiencing the kind of permanent decline that its share price implies.
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Its price-sales ratio is 27% below its 3.5 average since 2008, and the discount to its five-year average price-to-book value ratio is 31%.
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Beaten up Hovnanian Enterprises, for example, carries a price-to-book value ratio of 0.9, cheap relative to an average multiple since 1988 of 1.1.
Mr Osborne will also say the sale's valuation of Northern Rock's "price-to-book value ratio" - that is, its assets minus its liabilities - is higher than peers Barclays, Lloyds TSB or the Royal Bank of Scotland.
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It trades for 3.9 times sales, but its price-to-book-value ratio is just 1.2.
For example, a stock that has a low price to book ratio might only be attractive to Value investors.
In another measure, the ratio of price to tangible book value (shareholders' equity minus intangibles like goodwill), Citi is close to typical at 3.6.
In the ratio of price-to-book value China is, at 4.6, the second priciest, behind another country with a superheated economy: India, which trades at 4.9 times book.
On the other hand, the price-to-book ratio is a useful measure of value, and most researchers agree that this ratio is strongly correlated with stock price performance.
For example, Fidelity national trades for 0.72 times sales, 1.85 times book value and at a price-to-earnings growth ratio of 0.91.
Even so, it trades at 10% below book value and has a trailing price-to-earnings ratio of 10, which is a big discount to the industry average of 16.
Then there is the price-to-book ratio, which measures a company's stockmarket value against the book value of its assets.
The Price to Book ratio is a formula that represents the most recent share price of a company compared to its book value per share (the residual dollar value for common shareholders after assets are liquidated and all debtors are paid).
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While we were somewhat conflicted, given that the shares now trade for 12 times book value, in the end we decided to hold on a while longer as the current price-to-sales ratio of less than two is quite low for this sector, and we have previously sold Avanex on two separate occasions at much higher prices.
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