A concern on the right of use assets (ROU). As I understand the PB Ratio calculation is impacted from deduction of intangible assets. As understood that right of use assets are intangible and the utility company recently used (ROU) as recognition in non-current assets.
How do we make evaluation of the company value for PB when just within a year the book value per share has dropped from from 9.1 to 2.3 .
Would love your advice on this matter.
If the book value is volatile then PB ratio cannot be use. I think earning power, in term of PE will be better.
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