Currently, I am evaluating an asset heavy company, so using P/B ratio. I have few questions to clear :
- For P/B ratio, is it the same as NAV?
- Formula of P/B ratio = Total assets – total liabilites – intangible assets. Is this correct?
- What ratio is considered undervalue, fair value and overvalued?
- What is the reason when company share price is traded under its P/B ratio?
Hope for your advise. Thanks. :)
Please login or Register to submit your answer