Is book value really an out-of-date measure for stocks?

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 29 sec. here
  • 49 min. at publisher
  • 📊 Quality Score:
  • News: 179%
  • Publisher: 92%

Canadian News ニュース

Canada News,Breaking News Video,Canadian Breaking News

The measure was ideally suited to Depression-era industrials for capturing the liquidation value of a company that almost certainly owned machinery that could be auctioned off

The chart below is an updated version of one presented by Goldman Sachs chief strategist David Kostin before the pandemic that I haven’t been able to get out of my mind. U.S. sector valuations seem to have organized themselves using a largely outmoded accounting measure in the form of book value.

It is an issue here that few analysts or investors use book value any more. . Tangible asset-heavy market sectors are all grouped in the chart’s bottom left – low P/BV and low ROE territory. This includes utilities,, unsurprisingly, and also Amazon.com-dominated consumer discretionary. The communications services sector, in the lower third of the trend line, is an interesting case. It includes the low-asset, high-profitability Alphabet Inc. and Meta Platforms Inc. but profitability is dragged down by asset-heavy AT&T Inc. and Verizon Communications Inc.

 

コメントありがとうございます。コメントは審査後に公開されます。
このニュースをすぐに読めるように要約しました。ニュースに興味がある場合は、ここで全文を読むことができます。 続きを読む:

 /  🏆 5. in JP

日本 最新ニュース, 日本 見出し

Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。

Amazon joins exclusive club, crossing $2 trillion in stock market value for the first timeNEW YORK (AP) — Amazon joined the exclusive $2 trillion club Wednesday after Wall Street investors pushed the value of the e-commerce giant's stock past that...
ソース: YahooFinanceCA - 🏆 47. / 63 続きを読む »