Book Value & PBR Simplified
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https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">Book value is the value of company& #39;s net assets after reducing all the liabilities
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">(PBR)Price to book value is a ratio between company& #39;s share price & its book value
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">PBR is part of every fundamental analyst& #39;s checklist
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1/n
#StockMarket
1/n
#StockMarket
BV & PBR Simplified
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https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">BV is calculated as
Total assets - Total liabilities / number of outstanding shares
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">Book value can be higher or lower than market value of the company depending its financial position
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">Market value is the value of share price of the company
2/n
Total assets - Total liabilities / number of outstanding shares
2/n
BV & PBR Simplified
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π" title="Ledger" aria-label="Emoji: Ledger">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">PBR compares company& #39;s market value to its book value
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">PBR varies from sector to sector
(i.e - A good PBR for one industry might be poor for another)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">PBR below 1 considerd as value opportunity by long term investors
3/n
#StockMarket #Fundamentals
(i.e - A good PBR for one industry might be poor for another)
3/n
#StockMarket #Fundamentals
BV & PBR Simplified
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https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">PBR below 1 doesn& #39;t mean undervalued always
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">Lower PBR also reflects the company& #39;s inability to grow better than market expectations
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">High growth companies or sector leaders generally have high PBR as investors pay high premium to these companies
4/n
4/n
BV & PBR Simplified
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#investing check points
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https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">Buy
https://abs.twimg.com/emoji/v2/... draggable="false" alt="β‘οΈ" title="Rightwards arrow" aria-label="Emoji: Rightwards arrow">High PBR-High ROE as investors willing to pay higher
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">Buy
https://abs.twimg.com/emoji/v2/... draggable="false" alt="β‘οΈ" title="Rightwards arrow" aria-label="Emoji: Rightwards arrow">Low PBR-High ROE as investors ignoring it
https://abs.twimg.com/emoji/v2/... draggable="false" alt="π΅" title="Blue circle" aria-label="Emoji: Blue circle">Avoid/Research more incase
Low PBR-Low ROE as it could be a value trap
End of Thread
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Thanks & RT if u have Learned
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#investing check points
Low PBR-Low ROE as it could be a value trap
End of Thread
Thanks & RT if u have Learned