Are shares trading below Book Value worth a Buy?

#1
Some of the banking stocks are trading at 1/3rd of their book value. I see that there is a problem of NPA's with Banks but I dont think its so much that the share trades at 1/3rd of the book value.

Whats your view on this?
 

suri112000

Well-Known Member
#2
Some of the banking stocks are trading at 1/3rd of their book value. I see that there is a problem of NPA's with Banks but I dont think its so much that the share trades at 1/3rd of the book value.

Whats your view on this?
You want to buy cheap shares by value or price?

There are hundreds of shares which are available at cheap prices.

Hardly you will find any which are cheap by value.
 
#3
If the market thought that they were worth buying, they would have been bought in truckloads and price would have gone up.

One can get something cheap if he knows something that others do not know or can analyse the known facts to gain some unique insight.

Current market price is expected to discount and integrate every fact or expectation or sentiment.

my two cents :)
 

Einstein

Well-Known Member
#4
You want to buy cheap shares by value or price?

There are hundreds of shares which are available at cheap prices.

Hardly you will find any which are cheap by value.
what do you mean by cheap by value? how would you describe value of a stock?