One of the things that I find quite interesting about this stock is the Book Value (“
BV”). For those that aren’t familiar with the term, BV is (from
www.investopedia.com); “the net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.
BV is the accounting value of a firm. It has two main uses:
- It is the total value of the company’s assets that shareholders would theoretically receive if a company were liquidated.
- By being compared to the company’s market value, the book value can indicate whether a stock is under- or overpriced.”
A Price/BV of 3, for example, indicates that the Market Cap is 3 times the net asset value of a company (or in other words; the SP is 3 times the net asset value per share – people are paying 3 times the price of the ‘liquidation value’ of the stock, to own shares)
