Learning Series will start from now onwards to make you self-dependent.
Daily one Topic here :-
Todayโs is BOOK-VALUE(bv):-
Book Value is the actual net worth of a company according to its balance sheet.
In simple words:
๐ If a company sells all its assets and pays off all its debts, the money left belongs to shareholders โ that is book value.
Book Value (BV) = Companyโs Net Worth รท Number of Outstanding Shares
Formula:
Book Value Per Share (BVPS)
= (Total Assets โ Total Liabilities) รท Total Shares
Example:-
Suppose a company has:
Total Assets = โน10,000 crore
Total Liabilities = โน6,000 crore
Shares Outstanding = 100 crore
Book Value = (10,000 โ 6,000) รท 100
= โน40 per share
How to Use It:-
Price-to-Book Ratio (P/B)
= Share Price รท Book Value
Example:-
Share Price = โน32
Book Value = โน40
P/B = 32 รท 40 = 0.8
A P/B below 1 means the stock is trading below its book value.
Interpretation:-
โ P/B < 1
May indicate undervaluation
Common in PSU banks, cyclicals, and distressed sectors
โ P/B 1โ3
Usually fairly valued
โ P/B > 3
Market expects strong growth and high profitability
Important:-
A stock trading below book value is attractive only if:
For banks and NBFCs, Book Value and P/B ratio are among the most important valuation metrics.
Now comment low BOOK VALUE. STOCKS BELOW ๐
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#WutheringWaves
The trajectory Arteta has put Arsenal on is crazy, turning dreams into reality. I onoy ever dreamed my club would reach ucl finals and compete he has turned it into reality and won us the Premier League as well. Hope we sign monster attackers in summer with 2 midfielders.
2 normal penalty kicks away from being champions. PAINNN
Either all of us or none of us are judged by our lowest moments.
Just sign elite attackers who don't hide like cowards and we will be champions next time.
2 normal penalty kicks away from being champions. PAINNN
Either all of us or none of us are judged by our lowest moments.
Just sign elite attackers who don't hide like cowards and we will be champions next time.
@Swiggy@Cali_Burrito terrible experience, I ordered a veg rice bowl received a non veg one. Im a pure vegetarian marwadi. This is a total unacceptable terrible experience.