The Bank of Canada is well into a cycle of interest-rate cuts, with the U.S. Fed expected to join it this week. In Canada we have had three reductions in the central bank rate since June. In the United States, the markets are pricing in a nearly 50-per-centof a half-percentage-point cut on Wednesday with a total two-percentage-point reduction by March of next year. Lower interest rates weaken the underlying currency and strengthen the price of gold in that currency.
An adjusted book value is calculated by multiplying book value per share by its 10-year average price-to-book ratio.is a fundamental valuation platform with tools to calculate and report on value per share for thousands of public companies listed on major North American stock exchanges. Stockcalc also contains numerous tools to understand what the stocks you are investing in are worth.
All stocks on this list are dividend payers, which is uncommon for any of the industries in the basic-materials sector. I see all of our adjusted book valuations are below current price, indicating historic price-to-book ratios were lower than today’s values . Let’s look at a few of these companies: