Relationship between ROE, PE,P/BV.

#2

travi

Well-Known Member
#3
Getting the P/B Ratio right I think is a big challenge especially with so many huge mkt cap companies owning most of their wealth in intellectual property.
Back in the old days, a lot of the assets were in material form which are easily assess and normal rules of appreciation/depreciation apply.

Today for Eg. look at what FB is valued at, but if they went to liquidate it, does one think they'd even get half ?

Fate of yahoo, Nokia and even Sun Microsystems (I still feel sad for this deal) are some of the many examples bcos Tech companies form a large % of big mkt cap Co's
Even the 2008 bubble with realty values had a similar effect, the value which is evaluated isn't necessarily the value it'll get when liquidated.
 

Similar threads

Zerodha – Open Paperless Account

Open online account with Zerodha. Free delivery trading and Max Rs 20 for Intraday, F&O, Currency and Commodity Trading. Intraday High leverage with MIS, CO and BO.

Name:Phone:
Email:City:
State:
Are you a day trader?