Is book value really an out-of-date measure for stocks?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

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.

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 5. in KR
 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

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...
출처: YahooFinanceCA - 🏆 47. / 63 더 많은 것을 읽으십시오 »