Could I have a quick refresher on how to use PB to check the best price to purchase the share? would it be (a) calculate the net asset (taking out any intangibles and one off item) (b) using the net asset to check the revised PB value over a few years (c) look at what the average revised PB value is (d) decide on entry price based on the current revised PB value price?
First you have to plot the PB chart which uses the net asset value including the intangibles asset. (Do note that one off item is found under income statement. Hence net asset, there is no one off item). Secondly, find the average PB range and purchase the price below the average PB ratio with a discount.
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