this is the only good video that explained everything so well and idiots like me could understand right away. im subscribing to u now. thank you so v much
Good example - I am long Walgreens which currently has a pb ratio of .8. I think this represents value for Walgreens because the stores on typically in high traffic corners and generally have good real estate value. Lots of other reasons I like Walgreens as a long term investment but the intrinsic book value of decent real estate gives me a margin of safety.
I use this metric but not on its own. A good example of a company doing well with no P/E is Spotify. As you mentioned, Tech companies a are a little different.Great share.
is it total assets minus total liabilities? including the future inflows of cash? or money owed to the company? or just current assets minus current liabilities?
For a current P/B ratio you would only be considering the current assets - liabilities. You can also calculate a forward P/B ratio which would take future estimates into consideration
Yeah but not if their assets are intangible, non-current, etc. (hard to liquidate), and if they're bleeding cash. Imo though, if the company has positive free cash flow and trades under NCAV/share, then it's a bargain.
It is considered to be good to have a P/B greater than 1. Lower share prices relative to book value is considered to be a positive indicator and this ratio is looked at commonly by value investors who are looking to identify stocks that are selling below their intrinsic ("should be") value. Hope this helps! I'm just learning the basics myself.
![Natanael Cano - Amor Eterno [Official Video]](http://i.ytimg.com/vi/EO4prCs6WpM/mqdefault.jpg)
Do you use price to book ratio when evaluating a stock?
@StonkSlayd what do you mean by ‘need to realize value’?
Only when evaluating REITs.
I do, but not as a stand alone data point. it can be used as one of the many data points that can be used.
@@rookieinvestor6377 Couldn't agree more! Well said!
Yess
Great video I love how you present these kind of ratios, that makes it so much easier to understand for people that are not used to it!
That's awesome feedback! Thank you so much! That's exactly what I'm going for :)
Damn, and I was really looking forward to Sam's Scooters IPO but a 3.3x PB scares me 😂. Great video, very in depth as always.
Haha 10/10 comment. Thanks!
@@Rynance no problem, keep up the great content
This is a great explanation. Makes it easy to understand. Thanks so much for sharing 😀
Absolutely! Thanks for dropping by
I understood and English is not even my first language thank you so much !!!
I haven't used this ratio before, but it seems I'm actually missing out! Thanks for the breakdown!
I'm happy I could teach it to you! No prob!
Love the example's use of colors... visually pleasing and easy to understand. Nice video!
Great explanation, thanks
No problem!
this is the only good video that explained everything so well and idiots like me could understand right away. im subscribing to u now. thank you so v much
Bro this actually very helpfully to guide me to buy US stock. Thank U!!!
wow u make it very easy to understand. thank so much
I never knew what this was before haha great explanation!
Oh great happy I could help!!
Great video Ryan! So helpful! 😀
Good example - I am long Walgreens which currently has a pb ratio of .8. I think this represents value for Walgreens because the stores on typically in high traffic corners and generally have good real estate value. Lots of other reasons I like Walgreens as a long term investment but the intrinsic book value of decent real estate gives me a margin of safety.
Shared this on my facebook as I think this important. Thanks again.
Oh wow thanks so much! I really appreciate that 😀
I use this metric but not on its own. A good example of a company doing well with no P/E is Spotify. As you mentioned, Tech companies a are a little different.Great share.
Agreed! It’s important to use many metrics together before arriving at conclusion. Thanks!
Great video, superb illustration... Thanks for sharing
Brilliant video thank you so much
Excellent upload. I am new to P/B. Thanks for this
No problem! Thanks for checking it out!
Nice video. Congrats on the channel growth. Thanks for your support 🙏
Thanks so much!
Great vid & breakdown as always bro 👏🏾
Thanks!
Thanks for this very good and educational video!
Loving the longer format!
Awesome! I'll keep making them!
Best video for P/E Ratio
Learned something new. Thank you!
You’re welcome!
Very well explained! Thumbs up!
Much appreciated!
Great explanation as always!
Thanks!
Thanks for the education bud!!
Great stuff thanks for sharing Rynance!
My pleasure!
great video my man. Thanks
Awesome video! Keep them coming 🥳
Thanks so much! New videos every week!
Very Useful information.... 👌👍
@rynance
Please start making more videos
Your content is invaluable
Verry easy explained!
Love your videos...thanks for sharing.
Great video man thanks
Thanks for sharing
No problem!
Great explanation!!
Character In the video It's great, I like it a lot $$
Outstanding video
Good explanation!
thank you
Excellent 👌👌
great video man
Thanks
Good job! 😍👍
Thanks! 😀
is it total assets minus total liabilities? including the future inflows of cash? or money owed to the company? or just current assets minus current liabilities?
For a current P/B ratio you would only be considering the current assets - liabilities. You can also calculate a forward P/B ratio which would take future estimates into consideration
This made me want a PB n J
LOL
It's hard to find this kind of information in books or Maybe it just me who can't do that.
wouldn't be easier to use equity rather than asset minus liability?
the same thing
that is an error BVPS it is NOT (A-L) but (total SE/total SO)
Anda boleh memilih untuk salah satu daripada hadiah di atas
is the same thing nav and pbv?
No, NAV and PBV measure different things than PB ratio
Why PB ratio of less than 1 is red flagged, isn't it a bargain? Well, I agree being negative is not desirable
Yeah but not if their assets are intangible, non-current, etc. (hard to liquidate), and if they're bleeding cash. Imo though, if the company has positive free cash flow and trades under NCAV/share, then it's a bargain.
I’m still confused so is a p/b greater than 1 good or bad
It is considered to be good to have a P/B greater than 1. Lower share prices relative to book value is considered to be a positive indicator and this ratio is looked at commonly by value investors who are looking to identify stocks that are selling below their intrinsic ("should be") value. Hope this helps! I'm just learning the basics myself.
Is it true this metric is dying?
the sound is not good I am quite disappointed
thanks
Thanks