Price To Tangible Book Value

Price to Tangible Book Value: Unlocking Investment Potential

Are you tired of relying on gut feelings when making investment decisions? Do you want a concrete, quantifiable metric to help you identify undervalued companies? Then understanding the Price to Tangible Book Value (PTBV) ratio is crucial. This comprehensive guide will delve deep into PTBV, explaining what it is, how to calculate it, its strengths and weaknesses, and how to use it effectively in your investment strategy. We'll explore real-world examples and equip you with the knowledge to confidently analyze companies and spot potential bargains hidden in plain sight. Prepare to unlock a powerful tool in your investment arsenal.

What is Price to Tangible Book Value (PTBV)?

The Price to Tangible Book Value (PTBV) ratio is a financial metric that compares a company's market capitalization to its tangible book value. Unlike the Price-to-Book ratio (P/B), which includes intangible assets like goodwill and intellectual property, PTBV focuses solely on tangible assets – those with physical substance and readily determinable market value. This focus makes it a particularly valuable tool for analyzing companies in asset-heavy industries like manufacturing, real estate, and natural resources. These tangible assets represent a floor for a company's value, providing a more conservative valuation than the standard P/B ratio.

Calculating PTBV:

The calculation is straightforward:

PTBV = Market Capitalization / Tangible Book Value

Market Capitalization: This is the total market value of a company's outstanding shares. It's calculated by multiplying the current share price by the number of outstanding shares.

Tangible Book Value: This is the net asset value of a company after deducting intangible assets from its total assets. It's essentially the value of a company's physical assets if it were to be liquidated. You can find this information on a company's balance sheet. The formula is: Tangible Book Value = Total Assets - Intangible Assets - Liabilities

Example:

Let's say Company X has a market capitalization of $100 million and a tangible book value of $50 million. Its PTBV ratio would be 2.0 (100 million / 50 million). This indicates that the market is valuing the company at twice its tangible book value.

Interpreting the PTBV Ratio

A lower PTBV ratio generally suggests that a company is undervalued relative to its tangible assets. A high PTBV ratio, on the other hand, may indicate overvaluation or that the market expects significant future growth. However, like any financial ratio, PTBV should not be interpreted in isolation. It's crucial to consider other factors, including:

Industry Context: PTBV ratios vary significantly across industries. A PTBV of 2.0 might be considered high in one industry but low in another. Comparing a company's PTBV to its peers within the same industry provides a more meaningful context.

Debt Levels: High debt levels can significantly impact a company's tangible book value and distort the PTBV ratio. Consider a company's debt-to-equity ratio alongside the PTBV.

Growth Prospects: A high PTBV ratio might be justified if the company demonstrates strong growth potential and future earnings are expected to significantly exceed its current tangible book value.

Asset Quality: The quality of a company's tangible assets is crucial. Outdated or obsolete equipment will reduce the true value of those assets. Diligent analysis of the asset composition is necessary.

Strengths and Weaknesses of PTBV

Strengths:

Focus on Tangible Assets: This provides a more conservative valuation than the traditional P/B ratio, reducing the impact of potentially inflated intangible assets.

Simplicity and Ease of Calculation: The calculation is straightforward, making it accessible to a wide range of investors.

Useful for Asset-Heavy Industries: PTBV is particularly useful for analyzing companies in industries with significant tangible assets.

Weaknesses:

Ignoring Intangibles: The complete exclusion of intangible assets can undervalue companies with strong brands, intellectual property, or other valuable intangible assets.

Depreciation and Obsolescence: The tangible book value may not reflect the true market value of assets due to depreciation and obsolescence.

Accounting Practices: Different accounting practices can influence the reported tangible book value, affecting the accuracy of the PTBV ratio.

Using PTBV in Your Investment Strategy

PTBV can be a valuable tool in a multi-faceted investment strategy. It's most effective when used in conjunction with other valuation metrics and fundamental analysis. Here's how to incorporate PTBV into your process:

1. Screen for undervalued companies: Identify companies with low PTBV ratios compared to their industry peers.

2. Analyze financial statements: Thoroughly review a company's balance sheet to understand the composition of its tangible assets and identify any potential issues.

3. Consider industry context: Compare the PTBV ratio to the average PTBV of comparable companies within the same industry.

4. Assess growth prospects: Evaluate the company's future growth potential and its ability to generate returns that justify its current valuation.

5. Combine with other metrics: Don't rely solely on PTBV. Use it in conjunction with other valuation metrics like Price-to-Earnings (P/E), Return on Equity (ROE), and free cash flow analysis.

Ebook Outline: "Mastering the Price to Tangible Book Value"

Author: Financial Analyst, Jane Doe

Introduction: What is PTBV and why it matters.
Chapter 1: Calculating and Understanding PTBV. (Includes detailed examples and formula breakdowns)
Chapter 2: Interpreting the PTBV Ratio in Different Industries. (Industry-specific comparisons and case studies)
Chapter 3: Strengths and Weaknesses of Using PTBV. (Critical analysis of its limitations)
Chapter 4: PTBV and Other Valuation Metrics. (Synergistic use with other financial ratios)
Chapter 5: Case Studies: Real-world examples of successful PTBV-driven investment strategies.
Chapter 6: Building a PTBV-Based Investment Strategy. (Step-by-step guide and practical application)
Conclusion: Recap of key takeaways and future implications of using PTBV.
Appendix: Glossary of financial terms and resources for further learning.


(Note: The following sections elaborate on points from the above outline. Due to space constraints, only brief expansions are provided. A full ebook would require a much more in-depth analysis for each chapter.)

Chapter 1: Calculating and Understanding PTBV: This chapter would provide step-by-step instructions on calculating PTBV, using real company examples to illustrate the process. It would delve into the nuances of identifying tangible assets on balance sheets and address common accounting complexities.

Chapter 2: Interpreting the PTBV Ratio in Different Industries: This chapter would analyze how PTBV varies across different sectors. For example, a low PTBV in the manufacturing industry might indicate undervaluation, while the same ratio in the technology sector could signal something else entirely. The chapter would showcase case studies from various industries, comparing PTBV ratios to their respective industry averages.

Chapter 3: Strengths and Weaknesses of Using PTBV: A critical examination of the advantages and disadvantages of the PTBV ratio, including a detailed discussion of the limitations imposed by the exclusion of intangible assets and the potential for accounting manipulation.

Chapter 4: PTBV and Other Valuation Metrics: This would explore how PTBV works in conjunction with other ratios like P/E, ROE, and free cash flow to create a more comprehensive picture of a company's financial health and investment potential.

Chapter 5: Case Studies: This section would present compelling real-world examples of successful investment strategies that utilized PTBV analysis to identify undervalued companies and generate significant returns.

Chapter 6: Building a PTBV-Based Investment Strategy: A practical guide to integrating PTBV into a holistic investment approach, offering a structured method for screening, analyzing, and selecting investment opportunities based on the PTBV ratio and other relevant factors.

FAQs

1. What is the ideal PTBV ratio? There's no universally ideal PTBV ratio. The optimal ratio depends heavily on the industry and the specific company's circumstances. A low ratio is generally favorable, but it's crucial to compare it to industry benchmarks.

2. How does PTBV differ from the Price-to-Book ratio? PTBV excludes intangible assets, providing a more conservative valuation focused on tangible assets. The Price-to-Book ratio includes both tangible and intangible assets.

3. Can PTBV be used for all types of companies? While useful for many, PTBV is particularly relevant for asset-heavy companies in industries like manufacturing, real estate, and natural resources. It's less relevant for companies with primarily intangible assets.

4. What are the limitations of using PTBV? It ignores intangible assets, can be affected by accounting practices, and doesn't account for future growth potential independent of existing assets.

5. How often should I recalculate PTBV? It's advisable to recalculate PTBV regularly, ideally quarterly or annually, to reflect changes in market capitalization and tangible book value.

6. Can I use PTBV alone to make investment decisions? No. It's best used in conjunction with other financial metrics and a thorough fundamental analysis of the company.

7. Where can I find the data needed to calculate PTBV? A company's financial statements, specifically the balance sheet, provide the necessary data for calculating tangible book value. Market capitalization can be found on financial websites.

8. What if a company has negative tangible book value? A negative tangible book value suggests the company's liabilities exceed its tangible assets, a significant red flag indicating potential financial distress.

9. Is PTBV useful for short-term trading? While PTBV can provide insight into a company's intrinsic value, it's less suitable for short-term trading strategies and more valuable for long-term value investing.

Related Articles:

1. Price-to-Book Ratio (P/B): A Comprehensive Guide: Explains the P/B ratio and its relationship to PTBV.

2. Understanding Book Value: A Step-by-Step Guide: Provides a detailed explanation of book value and its components.

3. Intangible Assets and Their Impact on Valuation: Discusses the significance of intangible assets and their impact on valuation metrics.

4. Financial Statement Analysis for Investors: A broad overview of financial statement analysis and its importance in investment decision-making.

5. Return on Equity (ROE): A Key Performance Indicator: Explains ROE and its role in assessing profitability and efficiency.

6. Free Cash Flow (FCF): The Ultimate Measure of Value? Explores the importance of FCF in valuation and its relationship to PTBV.

7. Asset-Heavy Industries and Their Valuation Challenges: Focuses on the specific valuation challenges presented by asset-heavy industries.

8. Debt-to-Equity Ratio: Understanding Leverage and Risk: Explains the debt-to-equity ratio and its importance in assessing a company's financial risk.

9. How to Identify Undervalued Companies: A Practical Guide: Provides a broader approach to identifying undervalued companies, including the use of PTBV.


  price to tangible book value: Damodaran on Valuation Aswath Damodaran, 2016-02-08 Aswath Damodaran is simply the best valuation teacher around. If you are interested in the theory or practice of valuation, you should have Damodaran on Valuation on your bookshelf. You can bet that I do. -- Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management and author of More Than You Know: Finding Financial Wisdom in Unconventional Places In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of today?s critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of today?s valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face.
  price to tangible book value: Security Analysis: Fifth Edition Roger F. Murray, Sidney Cottle, Frank E. Block, 1988-01-22 Since its publication,Security Analysis by Graham and Dodd has been the investment bible and has sold more than 750,000 copies. Now the fifth edition of this classic updates the application of the Graham and Dodd valuation approach for today's greatly changed investment environment. This edition brings the Graham and Dodd approach up to date with the changes that have occurred since the last edition was published--changes in investment practices and regulation, several new tax laws, the explosion of new accounting and financial reporting rules, persistent inflation in capital markets, new investment instruments, and more. Maintaining the high standards of prior editions, Security Analysis puts at your fingertips the authoritative guidance on analyzing securities that generations of users have come to rely on. Here in clear, easy-to-use explanations you'll find the tools of financial statement analysis--from the investor's viewpoint and with an investor's notion of income and capital maintenance--that have enabled value investors to keep the edge in a highly competitive market. The book provides the principles and techniques to measure asset values and cash flows so that you can sharpen your judgments of company earnings, refresh your insight into what individual companies are worth, and evaluate how much debt a leveraged company can service. You'll find practical guidance to make better investment decisions whether you're a security analyst, portfolio manager, broker/dealer, investment banker, credit officer, or a serious individual investor. Heavily illustrated with examples taken from real companies, Security Analysis, Fifth Edition, is an investment book like no other for investors who aspire to the highest investment accomplishments.
  price to tangible book value: Equity Asset Valuation John D. Stowe, 2007-01-22 Here is an essential tool for the investor: clear, practical, insightful, and concise. This book should have a long, useful life in a professional's library. —Jeffrey P. Davis, CFA, Chief Investment Officer, Lee Munder Capital Group This book provides a clear, comprehensive overview of equity valuation concepts and methods. It is well suited for finance practitioners who want to strengthen their understanding of equity asset valuation and as a supplemental reading in advanced undergraduate and graduate courses addressing security analysis and business valuation. —Professor Robert Parrino, CFA, PhD, Department of Finance, Red McCombs School of Business, The University of Texas at Austin CFA Institute has done it again. This will be a 'must' reference book for anyone serious about the nuances of equity investment valuation. —Robert D. Arnott, Chairman, Research Affiliates Equity Asset Valuation concisely and clearly explains the most widely used approaches to equity evaluation. In addition to thoroughly explaining the implementation of each valuation method, there is sophisticated discussion of the commonsense financial economics and accounting issues underlying the methods. —David Blackwell, Head and RepublicBank/James W. Aston Professor of Finance, Mays Business School, Texas A&M University
  price to tangible book value: The Firm Duff McDonald, 2014-09-30 Star financial journalist Duff McDonald uncovers how the managing consulting firm of McKinsey & Company and its high-powered, high-priced business savants have ushered in waves of structural, financial, and technological shifts to the biggest and best American organizations, revealing a list of world-shaping successes and striking failures.
  price to tangible book value: Business Valuation For Dummies Lisa Holton, Jim Bates, 2015-09-15 Buying or selling a business? Acquire the tools and learn the methods for accurate business valuation Business valuation is the process of determining the value of a business enterprise or ownership interest. Business Valuation For Dummies covers valuation methods, including advice on analyzing historical performance, evaluating assets and income value, understanding a company's financial statements, forecasting performance; estimating the cost of capital; and cash flow methods of valuation. Written in plain English, this no-nonsense guide is filled with expert guidance that business owners, managers at all levels, investors, and students can use when determining the value of a business. It contains a solid framework for valuation, including advice on analyzing historical performance, evaluating assets and income value, understanding a company's financial statements, estimating the cost of capital, business valuation models, and how to apply those models to different types of businesses. Business Valuation For Dummies takes you step-by-step through the business valuation process, explaining the major methods in an easy-to-understand manner with real-world examples. Inside you’ll discover: The value of business valuation, including when it’s necessary The fundamental methods and approaches to business valuation How to read a valuation report and financial statements The other players in the valuation process How to decide you’re ready to sell — and the best time to do so The three stages of due diligence: the meet and greet; the hunting and gathering; the once-over How to decide you’re ready to buy — and find the right business for you What due diligence means on the buying side of things When to call in the experts: divorce; estate planning and gifting; attracting investors and lenders This is an essential guide for anyone buying a business, selling a business, participating in a merger or acquisition, or evaluating for tax, loan, or credit purposes. Get your copy of Business Valuation For Dummies to get the information you need to successfully and accurately place a value on any business.
  price to tangible book value: Integrated Bank Analysis and Valuation S. Chen, 2013-11-21 Leading analyst Sandy Chen provides a thorough guide to the analysis and valuation of banks. Unlike other businesses and institutions, banks have a number of unique characteristics that need to be taken into account when performing a valuation and as such traditional valuation methodologies are unsuitable and more specialized techniques required.
  price to tangible book value: The Banking Industry Guide: Key Insights for Investment Professionals Ryan C. Fuhrmann, 2017
  price to tangible book value: The Market Approach to Valuing Businesses Shannon P. Pratt, 2006-02-22 Your Best Approach to Determining Value If you're buying, selling, or valuing a business, how can you determine its true value? By basing it on present market conditions and sales of similar businesses. The market approach is the premier way to determine the value of a business or partnership. With convincing evidence of value for both buyers and sellers, it can end stalemates and get deals closed. Acclaimed for its empirical basis and objectivity, this approach is the model most favored by the IRS and the United States Tax Court-as long as it's properly implemented. Shannon Pratt's The Market Approach to Valuing Businesses, Second Edition provides a wealth of proven guidelines and resources for effective market approach implementation. You'll find information on valuing and its applications, case studies on small and midsize businesses, and a detailed analysis of the latest market approach developments, as well as: A critique of US acquisitions over the last twenty-five years An analysis of the effect of size on value Common errors in applying the market approach Court reactions to the market approach and information to help you avoid being blindsided by a litigation opponent Must reading for anyone who owns or holds a partial interest in a small or large business or a professional practice, as well as for CPAs consulting on valuations, appraisers, corporate development officers, intermediaries, and venture capitalists, The Market Approach to Valuing Businesses will show you how to successfully reach a fair agreement-one that will satisfy both buyers and sellers and stand up to scrutiny by courts and the IRS.
  price to tangible book value: The Aggressive Conservative Investor Martin J. Whitman, Martin Shubik, 2011-02-15 The Aggressive Conservative Investor will never go out of date. Regulation, disclosure, and other things may change, but the general approach and mindset to successful investing are timeless. Read this book and you will learn the rudiments of 'safe and cheap' investing. An essential read for every amateur and professional investor. --Stan Garstka, Deputy Dean & Professor in the Practice of Faculty & Management, Yale School of Management Security analysis toward both better odds and higher long-term payoff: A readable, authoritative guide. --Professor Bill Baumol, New York University In reading this book, one is struck by the simplicity of the ideas and the dependence of the investor on his own understandings of reality as opposed to the myths on the street. The updated version of this 1979 classic incorporates all the modern financial engineering that has occurred as a product of the late 20th century, and the new methodologies refine your abilities to measure risk but don't change the fundamentals of value. The updated version of The Aggressive Conservative Investor is very much a value-added proposition. --Sam Zell, Chairman, Equity Group Investment LLC I concur with those people who regard Marty Whitman as the 'Dean of Value Investing.' This book is a must-read for everyone interested in understanding the art of investing. --Melvin T. Stith, Dean, Whitman School of Management, Syracuse University This no-holds-barred presentation of one of the most successful investment strategies of all time -- value investing in distressed securities/companie -- shows you how to analyze and evaluate stocks just like controlling owners. Based on the assumption that stock price rarely reflects real value, authors Whitman and Shubik use numerous case studies to present risk-minimizing methods that also provide high rewards. Still relevant today, this classic work includes a new introduction discussing the dramatic changes that have taken place in the value investing world since its first publication in 1979.
  price to tangible book value: Rule #1 Phil Town, 2010-03-11 Who's going to provide for your future? There's a crisis looming in pensions. Investing in property is time-consuming and risky. Savings accounts yield very little return. If you're not careful, you could be looking at a very uncomfortable retirement. But surely the alternative - investing in the stock market - is risky, complicated and best left to the professionals? Phil Town doesn't think so. He made a fortune, and in Rule #1 he'll show you how he did it. Rule #1: - Sets out the five key numbers that really count when you're buying stocks and shares - Explains how to use new Internet tools to simplify research - Shows how to exploit the advantages of being an individual investor - Demonstrates how to pay fifty pence for every pound's worth of business This simple and straightforward method will guide you to 15% or better annual returns - in only 15 minutes a week. It's money in the bank!
  price to tangible book value: Risk and Return in Asian Emerging Markets N. Cakici, K. Topyan, 2014-08-13 Risk and Return in Asian Emerging Markets offers readers a firm insight into the risk and return characteristics of leading Asian emerging market participants by comparing and contrasting behavioral model variables with predictive forecasting methods.
  price to tangible book value: How to Understand the Financial Pages Alexander Davidson, 2008-07-03 The only basic guide to the financial media that anyone will ever need. This new edition of How to Understand the Financial Pages provides comprehensive coverage of newspapers and magazines, and also financial websites, stockbrokers' research and company reports. The handy A-Z format enables the reader to look up entries quickly and easily. Essential terms and concepts are explained in non-technical English, and it is extensively cross-referenced. A valuable reference tool for any private investor, it is international in scope and includes references to the use of technical analysis in internet trading, the development of hedge funds and other alternative investments, and the growth of financial services regulation and compliance - something other guides often omit. Journalistic, snappy and stylish, it will help anyone to read the financial pages and gain a full understanding of the concepts involved.
  price to tangible book value: Beat the Inefficient Market Leo Vian, ⭐4.9 on Amazon (Read 139 reviews: www.amazon.com/dp/B0C6WD81X8#customerReviews) Unlock the Secrets of Stock Market Success with Leo Vian's Revolutionary Guide Dive into the world of stock investing with Beat the Inefficient Market, your ultimate roadmap to navigating the complexities of the stock market with ease and confidence. Whether you're a seasoned investor or just starting out, Leo Vian's innovative strategies and clear, accessible guidance will transform your approach to investing. Why This Book Stands Out: ➢ Practical and Accessible: With a focus on real-world application, this book breaks down complex concepts into understandable terms, complete with examples and resources. ➢ Innovative Strategies: Discover seven unique stock investment systems, ranging from simple, formula-based approaches to sophisticated methods that leverage your investment talent. ➢ Evidence-Based Investing: Learn to make smarter investment decisions based on solid evidence, avoiding common pitfalls and myths. What You'll Learn: ➢ The fundamentals of stock investing, presented in a clear and engaging manner. ➢ Practical investment systems that can be applied by anyone, regardless of experience. ➢ How to exploit the inefficiencies of the stock market for superior returns. Detailed Investment Systems: This book presents and explains 7 Stock Investment Systems with increasing complexity, profit potential, and demands on an investor's resources, such as time. Systems 1-4: ➢ Mechanical application based on investment formulas ➢ Results independent of investment talent ➢ Return of the systems ranges between 7% and 15% per year Systems 5-7: ➢ Further increasing complexity and profitability ➢ Space for actualizing investment talent ➢ Return of the systems ranges between 17% and over 20% per year Praise for Beat the Inefficient Market: Beat the Inefficient Market: Investing in Stocks by Leo Vian is a five-star masterpiece that deserves a place in every investor's library. Whether you're a novice looking to start your investment journey or an experienced investor seeking to refine your approach, this book is an indispensable resource. Leo Vian's expertise and passion for investing are evident on every page, making this book a must-read for anyone seeking financial prosperity through the stock market. Prepare to be enlightened, inspired, and equipped with the knowledge to navigate the market with confidence and success. - Harvey Stills, investor Take the First Step Towards Investment Mastery: Don't miss out on the opportunity to revolutionize your investment strategy. With Beat the Inefficient Market, you'll gain the knowledge and tools needed to achieve long-term success in the stock market. Grab Your Copy Now and Start Your Journey to Financial Freedom!
  price to tangible book value: Resolving the Financial Crisis C. E. V. Borio, Bent Vale, Goetz Von Peter, 2010 How does the management and resolution of the current crisis compare with the response of the Nordic countries in the early 1990s, widely regarded as exemplary? We argue that, while intervention has been prompter, the measures taken so far remain less comprehensive and in-depth. In particular, the cleansing of balance sheets has proceeded more slowly, and less attention has been paid to reducing excess capacity and avoiding competitive distortions. In general, policymakers have given higher priority to sustaining aggregate demand in the short term than to encouraging adjustment in the financial sector and containing moral hazard. We argue that three factors largely explain this outcome: the more international nature of the crisis; the complexity of the instruments involved; and, hardly appreciated so far, the effect of accounting practices on the dynamics of the events, reflecting in particular the prominent role of fair value accounting (and mark to market losses) in relation to amortised cost accounting for loan books. There is a risk that the policies followed so far may delay the establishment of the basis for a sustainably profitable and less risk-prone financial sector.
  price to tangible book value: Valuation Approaches and Metrics Aswath Damodaran, 2005 Valuation lies at the heart of much of what we do in finance, whether it is the study of market efficiency and questions about corporate governance or the comparison of different investment decision rules in capital budgeting. In this paper, we consider the theory and evidence on valuation approaches. We begin by surveying the literature on discounted cash flow valuation models, ranging from the first mentions of the dividend discount model to value stocks to the use of excess return models in more recent years. In the second part of the paper, we examine relative valuation models and, in particular, the use of multiples and comparables in valuation and evaluate whether relative valuation models yield more or less precise estimates of value than discounted cash flow models. In the final part of the paper, we set the stage for further research in valuation by noting the estimation challenges we face as companies globalize and become exposed to risk in multiple countries.
  price to tangible book value: Fair Value Measurements International Accounting Standards Board, 2006
  price to tangible book value: Investment Valuation Aswath Damodaran, 2002-01-31 Valuation is a topic that is extensively covered in business degree programs throughout the country. Damodaran's revisions to Investment Valuation are an addition to the needs of these programs.
  price to tangible book value: The End of Accounting and the Path Forward for Investors and Managers Baruch Lev, Feng Gu, 2016-06-14 An innovative new valuation framework with truly useful economic indicators The End of Accounting and the Path Forward for Investors and Managers shows how the ubiquitous financial reports have become useless in capital market decisions and lays out an actionable alternative. Based on a comprehensive, large-sample empirical analysis, this book reports financial documents' continuous deterioration in relevance to investors' decisions. An enlightening discussion details the reasons why accounting is losing relevance in today's market, backed by numerous examples with real-world impact. Beyond simply identifying the problem, this report offers a solution—the Value Creation Report—and demonstrates its utility in key industries. New indicators focus on strategy and execution to identify and evaluate a company's true value-creating resources for a more up-to-date approach to critical investment decision-making. While entire industries have come to rely on financial reports for vital information, these documents are flawed and insufficient when it comes to the way investors and lenders work in the current economic climate. This book demonstrates an alternative, giving you a new framework for more informed decision making. Discover a new, comprehensive system of economic indicators Focus on strategic, value-creating resources in company valuation Learn how traditional financial documents are quickly losing their utility Find a path forward with actionable, up-to-date information Major corporate decisions, such as restructuring and M&A, are predicated on financial indicators of profitability and asset/liabilities values. These documents move mountains, so what happens if they're based on faulty indicators that fail to show the true value of the company? The End of Accounting and the Path Forward for Investors and Managers shows you the reality and offers a new blueprint for more accurate valuation.
  price to tangible book value: What Works on Wall Street James P. O'Shaughnessy, 2005-06-14 A major contribution . . . on the behavior of common stocks in the United States. --Financial Analysts' Journal The consistently bestselling What Works on Wall Street explores the investment strategies that have provided the best returns over the past 50 years--and which are the top performers today. The third edition of this BusinessWeek and New York Times bestseller contains more than 50 percent new material and is designed to help you reshape your investment strategies for both the postbubble market and the dramatically changed political landscape. Packed with all-new charts, data, tables, and analyses, this updated classic allows you to directly compare popular stockpicking strategies and their results--creating a more comprehensive understanding of the intricate and often confusing investment process. Providing fresh insights into time-tested strategies, it examines: Value versus growth strategies P/E ratios versus price-to-sales Small-cap investing, seasonality, and more
  price to tangible book value: Strategy Maps Robert S. Kaplan, David P. Norton, 2004 The authors of The Balanced Scorecard and The Strategy-Focused Organization present a blueprint any organization can follow to align processes, people, and information technology for superior performance.
  price to tangible book value: The Intelligent Option Investor: Applying Value Investing to the World of Options Erik Kobayashi-Solomon, 2014-08-29 HOW TO USE YOUR HUMAN ADVANTAGE TO OUTPERFORM ALGORITHMS IN THE OPTIONS MARKET If you're a value investor who wants to get your money into the lucrative options market, forget about day trading, chart patterns, and market timing. This systematic book lays out a path to long-term wealth by taking positions on companies with real intrinsic value--the kind Ben Graham and Warren Buffett would invest in. Leave the complex algorithms and Greeks for the floor traders. Erik Kobayashi-Solomon, former investment banker, hedge fund risk manager, and valuation consultant to the World Bank, gives you the knowledge and sophisticationto understand what options pricing reveals about the market's estimation of future stock prices. He then demonstrates how to find tremendous opportunity for low-risk, high-profit investments in the difference between the market's mechanized price ranges and ones madeby you, a thoughtful human being armed with the insight this book offers. Everything you need to make options a powerfulcontributor to your portfolio is inside, including: A thorough explanation of what options are and what their prices can tell you about the market's expectations for the future price of a stock A proven way to envision the risk/reward trade-off for stocks and options and a straightforward method to use theflexibility and directionality of options to tilt the risk/return balance in your favor A robust and intuitive framework for assessing the value of a company Strategies to avoid the most common behavioral pitfalls Tips for using the information on an option-pricing screen Thorough coverage of important option investment strategies, including covered calls, protective puts, and collars Regardless of your experience level with options, this versatile guide makes you a better investor. Beginners get a turnkey solution to growing wealth in options, experienced investors gain savvy guidance for fine-tuning their practices, and professional investors learn how to effectively incorporate options into a portfolio. Understanding valuation in this perceptive light lets you earn the consistent profi ts of The IntelligentOption Investor. The Intelligent Option Investor is the hands-on guide to using a cuttingedge valuation framework in the fast-paced options market to boost growth, protect gains, and generate income. It explains how to use your insightful human mind to recognize when mechanized options pricing undervalues a stock. Once you see an opportunity, you'll have all the tools you need to execute a fact-based decision about how and when to invest in the company. Have your money make the most for you with the potent blend of timehonored value investing strategies and hot options vehicles in The Intelligent Option Investor. PRAISE FOR THE INTELLIGENT OPTION INVESTOR: The Intelligent Option Investor reflects Erik's keen understanding of how companies create value for their owners, which is essential to successful option investing. In addition to showcasing Erik's expertise in developing option investment strategies based on fundamental security analysis and a long-term time horizon, this book delivers the information in a way that’s accessible to individual investors, offering them the resources to use options to help them meet their financial goals. -- JOE MANSUETO, founder, chairman, and CEO, Morningstar, Inc. Erik knows--and lays out here--that to use options successfully, you need to understand the underlying stock and its valuation first. This is one of few books onoptions that teaches this fruitful, combined approach. And that's why it works. -- JEFF FISCHER, advisor, Motley Fool Options
  price to tangible book value: Accounting Theory Harry I. Wolk, James L. Dodd, John J. Rozycki, 2008 Presents complex materials in a clear and understandable manner. Incorporating the latest accounting standards and presenting the most up-to-date accounting theory from the top academic journals in accounting and finance throughout the world.
  price to tangible book value: Online Investing For Dummies Matthew Krantz, 2019-08-01 Build a winning portfolio—and reduce your risk—with this bestselling guide Online investing has never been easier—or more potentially confusing. Now that every broker or finance site has its own app, data, or approach, it can be all too easy to be misled and make a bad decision. Online Investing for Dummies helps you reduce risk and separate the gimmicks from the gold, pointing investors of all experience levels to the pro-tips, calculators, databases, useful sites, and peer communities that will lead to success. Updated to include information on mobile trading and the influence of social media on the markets, the book also covers the basics—showing you how to figure out how much to invest, find data online, and pick an online broker. It then progresses through to more advanced topics, such as calculating returns, selecting mutual funds, buying bonds, options, commodities, and IPOs, taking you and your money wherever you want to go in the global market. Set expectations and assess your risk Analyze stocks and financial statements Assemble the suite of tools to calculate your performance Get tips on choosing the right online broker and on protecting your information online It’s time to get a pro strategy, and Online Investing for Dummies has all the inside information you need to build up that winning portfolio.
  price to tangible book value: Good Stocks Cheap: Value Investing with Confidence for a Lifetime of Stock Market Outperformance Kenneth Jeffrey Marshall, 2017-06-23 Power through the ups and downs of the market with the Value Investing Model. Stock prices fluctuate unpredictably. But company values stay relatively steady. This insight is the basis of value investing, the capital management strategy that performs best over the long term. With Good Stocks Cheap, you can get started in value investing right now. Longtime outperforming value investor, professor, and international speaker Kenneth Jeffrey Marshall provides step-by-step guidance for creating your own value investing success story. You’ll learn how to: • Master any company with fundamental analysis • Distinguish between a company’s stock price from its worth • Measure your own investment performance honestly • Identify the right price at which to buy stock in a winning company • Hold quality stocks fearlessly during market swings • Secure the fortitude necessary to make the right choices and take the right actions Marshall leaves no stone unturned. He covers all the fundamental terms, concepts, and skills that make value investing so effective. He does so in a way that’s modern and engaging, making the strategy accessible to any motivated person regardless of education, experience, or profession. His plain explanations and simple examples welcome both investing newcomers and veterans. Good Stocks Cheap is your way forward because the Value Investing Model turns market gyrations into opportunities. It works in bubbles by showing which companies are likely to excel over time, and in downturns by revealing which of these leading businesses are the most underpriced. Build a powerful portfolio poised to deliver outstanding outcomes over a lifetime. Put the strength of value investing to work for you with Good Stocks Cheap.
  price to tangible book value: The Equity Edge Mark Jeavons, 2020-03-24 The Equity Edge provides a complete system for successfully building and managing an investment portfolio of stocks and shares that steadily grows wealth and generates a reliable income. Successful investor Mark Jeavons answers many of the practical questions investors have when investing. He shows you how to select the very best companies to invest in, taking you through all the steps of the selection process. He then gives you the strategies to determine when to buy and sell investments to ensure your portfolio can survive and prosper in all market conditions. The methods outlined provide a consistent equity edge, minimising poor investment decisions while generating superior returns to the overall market over the long term.
  price to tangible book value: Principles of Accounting Volume 1 - Financial Accounting Mitchell Franklin, Patty Graybeal, Dixon Cooper, 2019-04-11 The text and images in this book are in grayscale. A hardback color version is available. Search for ISBN 9781680922929. Principles of Accounting is designed to meet the scope and sequence requirements of a two-semester accounting course that covers the fundamentals of financial and managerial accounting. This book is specifically designed to appeal to both accounting and non-accounting majors, exposing students to the core concepts of accounting in familiar ways to build a strong foundation that can be applied across business fields. Each chapter opens with a relatable real-life scenario for today's college student. Thoughtfully designed examples are presented throughout each chapter, allowing students to build on emerging accounting knowledge. Concepts are further reinforced through applicable connections to more detailed business processes. Students are immersed in the why as well as the how aspects of accounting in order to reinforce concepts and promote comprehension over rote memorization.
  price to tangible book value: Business Valuation and Taxes David Laro, Shannon P. Pratt, 2005-04-22 Disputes over valuation issues fill the court's dockets and for good reason, fair market valuations are required frequently by the law. The authors believe that approximately 243 sections of the Code and several thousand references in the Regulations explicitly require fair market value determination. Consequently, taxpayers file an estimated 15 million tax returns each year reporting an event involving a valuation related issue. It is no mystery, therefore, why valuation cases are ubiquitous. Today, valuation is an important and highly sophisticated process. Valuators need legitimate guidance to perform their work. The objective of this book is to provide knowledge, and guidance to those who do the valuations as well as those who are affected by them. This unprecedented text provides: Clear guidance and perspective on business valuation from two of the nation’s top authorities, Hon. David Laro and Dr Shannon Pratt. Insightful perspective and discussion on critical issues, procedures and law pertaining to business valuation. An overview of business valuation procedures Law and techniques of Fair Market Value Opinion from the Hon. David Laro and Dr. Shannon Pratt who express their unique and critical views. The business valuer with everything from the basics to the sophisticated. From definitions to valuing complex business interests, what you need to know about business valuation. Everything from empirical market evidence to credible expert business valuation testimony discussed and analyzed by the Hon. David Laro and Dr. Shannon Pratt.
  price to tangible book value: Office of Thrift Supervision Journal , 1989
  price to tangible book value: 2017 Valuation Handbook - International Industry Cost of Capital Roger J. Grabowski, Carla Nunes, James P. Harrington, Duff & Phelps, 2017-10-16 Real-world cost of capital data from across industries and around the globe The 2017 Valuation Handbook – International Industry Cost of Capital offers the same type of rigorous industry-level analysis published in the U.S.-centric Valuation Handbook – U.S. Industry Cost of Capital. It provides industry-level cost of capital estimates (cost of equity, cost of debt, and weighted average cost of capital, or WACC), plus detailed industry-level statistics for sales, market capitalization, capital structure, various levered and unlevered beta estimates (e.g., ordinary-least squares (OLS) beta, sum beta, peer group beta, downside beta, etc.), valuation (trading) multiples, financial and profitability ratios, equity returns, aggregate forward-looking earnings-per-share (EPS) growth rates, and more. For more information about Duff & Phelps valuation data published by Wiley, please visit www.wiley.com/go/valuationhandbooks. Also Available 2017 Valuation Handbook – International Guide to Cost of Capital 2017 Valuation Handbook – U.S. Guide to Cost of Capital 2017 Valuation Handbook – U.S. Industry Cost of Capital Key Features Four global economic regions: The 2017 Valuation Handbook – International Industry Cost of Capital includes industry-level analyses for four global economic regions: the World, the European Union, the Eurozone, and the United Kingdom. Industries in the book are identified by their Global Industry Classification Standard (GICS) code (at the 2-, 4-, and 6-digit code level). Three currencies: Each of the four global region's industry analyses are presented in three currencies: the Euro, the British pound, and the U.S. dollar.
  price to tangible book value: Valuing Banks Federico Beltrame, Daniele Previtali, 2016-06-27 This book aims to overcome the limitations the variations in bank-specifics impose by providing a bank-specific valuation theoretical framework and a new asset-side model. The book includes also a constructive comparison of equity and asset side methods. The authors present a novel framework entitled, the “Asset Mark-down Model”. This method incorporates an Adjusted Present Value model, which allows practitioners to identify the main value creation sources of a particular bank: from asset-based cash flow and the mark-down on deposits, to tax benefits on bearing liabilities. Through the implementation of this framework, the authors offer a more accurate and more specific approach to valuing banks.
  price to tangible book value: Valuation for Accountants Stephen Lynn, 2020-02-26 This book focuses on the valuation needed to apply IFRS (International Financial Reporting Standards), and provides coverage of financial instruments – indeed this is the starting point of the exposition. The book adopts a logical sequence where models of financial instruments are explained first and models of other assets (such as property, an enterprise, or multiple intangibles) are presented as extensions. The book uses mathematical notation in presenting many of the models, but the focus is on application rather than proof. The mathematics is presented at a level that assumes sufficient background in high school algebra and coordinate geometry, prior knowledge of elementary probability, and a knowledge of basic statistics. Readers should also be aware of what linear regression does and should be able to run a regression and interpret the output. Calculus is not assumed. The models discussed almost always require a computer to apply. However, the emphasis is on understanding the models rather than learning computer skills, especially in the case of financial instruments.
  price to tangible book value: OECD Benchmark Definition of Foreign Direct Investment 2008 Fourth Edition OECD, 2009-10-15 The OECD Benchmark Definition of Foreign Direct Investment sets the world standard for FDI statistics. It provides a single point of reference for statisticians and users on all aspect of FDI statistics, while remaining compatible with other internationally accepted statistical standards.
  price to tangible book value: Stock Market Math Michael C. Thomsett, 2017-11-20 Stock Market Math shows you how to calculate return, leverage, risk, fundamental and technical analysis problems, price, volume, momentum and moving averages, including over 125 formulas and Excel programs for each, enabling readers to simply plug formulas into a spread sheet. This book is the definitive reference for all investors and traders. It introduces the many formulas and legends every investor needs, and explains their application through examples and narrative discussions providing the Excel spreadsheet programs for each. Readers can find instant answers to every calculation required to pick the best trades for your portfolio, quantify risk, evaluate leverage, and utilize the best technical indicators. Michael C. Thomsett is a market expert, author, speaker and coach. His many books include Mathematics of Options, Real Estate Investor’s Pocket Calculator, and A Technical Approach to Trend Analysis. In Stock Market Math, the author advances the science of risk management and stock evaluation with more than 50 endnotes, 50 figures and tables, and a practical but thoughtful exploration of how investors and traders may best quantify their portfolio decisions.
  price to tangible book value: Valuation of Human Capital Kimberly K. Merriman, 2017-07-18 This book addresses the gap between the espoused importance of organizational human capital and how it is actually reported and assessed. It also discusses the current and potential uses of human capital measurement and a way for HR to position itself among other business functions such as finance, accounting, and operations. Readers will finish with an understanding of approaches for the valuation of a firm’s human capital, practical applications for the economic analysis of human capital, and gaps that are ripe for research and practice to address.
  price to tangible book value: Mergers, Acquisitions, and Other Restructuring Activities Donald DePamphilis, 2009-09-22 In the fifth edition of this well-known text, Dr. DePamphilis explains the real world of mergers, acquisitions, and restructuring based on his academic knowledge and personal experiences with over 30 such deals himself. Important enhancements unique to the fifth edition: all 99 cases involve real-life deals made or announced within the last five years, extensive discussions of all current valuation techniques and their strengths and weaknesses, cross-border transactions analyzed and explained in detail, tax and legal issues covered comprehensively. - Focuses on the REAL WORLD, not just theory. The 99 case studies span every industry and dozens of countries and show how deals are done rather than just the theory behind them. All cases fully updated for this edition. Cases all involve transactions that have occurred or been announced within the past 3-5 years. - Extensive updating and enhanced content provided on reorganization, bankruptcy, and liquidation issues both inside and outside of bankruptcy court
  price to tangible book value: Investment Banking For Dummies Matthew Krantz, Robert R. Johnson, 2014-02-10 Enrich your career with a review of investment banking basics One of the most lucrative fields in business, investment banking frequently perplexes even banking professionals working within its complex laws. Investment Banking For Dummies remedies common misconceptions with a straightforward assessment of banking fundamentals. Written by experts in stock market proceedings, this book runs parallel to an introductory course in investment banking. It clearly outlines strategies for risk management, key investment banking operations, the latest information on competition and government regulations, and relationships between leveraged buyout funds, hedge funds, and corporate and institutional clients. With this reference, you can ace investment banking courses and grasp the radical changes that have revamped the stock market since the financial crisis. Thoroughly addresses the dramatic financial changes that have occurred in recent years Outlines expectations to prepare you for the future Teaches the practical aspects of finance and investment banking, how to value a company, and how to construct a financial model No serious business student or banking professional should be without the basic knowledge of issuing bonds, stocks, and other financial products outlined in this excellent resource.
  price to tangible book value: The Intelligent REIT Investor Stephanie Krewson-Kelly, R. Brad Thomas, 2016-08-16 The go-to guide for smart REIT investing The Intelligent REIT Investor is the definitive guide to real estate investment trusts, providing a clear, concise resource for individual investors, financial planners, and analysts—anyone who prioritizes dividend income and risk management as major components to wealth-building. The REIT industry experienced a watershed event when Standard & Poors created a new Global Industry Classification Standard (GICS) sector called Real Estate. Publicly traded equity REITs have been removed from Financials, where they have been classified since their creation in 1960, and have begun trading as their own S&P Sector. This separation from banks and financial institutions has attracted new investors, but REITs require an industry-specific knowledge that is neither intuitive nor readily accessible to newcomers—until now. Using straightforward language and simple example to illustrate important concepts, this book will enable any reader to quickly learn and understand the lexicon and valuation techniques used in REIT investing, providing a wealth of practical resources that streamline the learning process. The discussion explains terminology, metrics, and other key points, while examples illustrate the calculations used to evaluate opportunities. A comprehensive list of publicly-traded REITs provides key reference, giving you access to an important resource most investors and stockbrokers lack. REITs are companies that own or finance commercial rental properties, such as malls and apartment buildings. Despite historically high total returns relative to other investments, such as the Nasdaq or S&P 500 index, most investors are unfamiliar with the REIT industry, and wary of investing without adequate background. This book gets you up to speed on the essentials of REIT investing so you can make more informed—and profitable—decisions. Understand REITs processes, mechanisms, and industry Calculate key metrics to identify suitable companies Access historical performance tables and industry-specific terminology Identify publicly-traded REITs quickly and easily REITs have consistently outperformed many more widely known investments. Over the past 15-year period, for example, REITs returned an average of 11% per year, better than all other asset classes. Since 2009, REITs have enjoyed positive returns; large cap stocks and cash are the only other classes that paralleled that record. Even in 2015, a 'year of fear' related to rising rates, REITs returned 2.4%, beating most all other asset classes. REITs have a long history (over fifty years) of performance, and have entered the big leagues. If you feel like you've been missing out, don't keep missing out. Prepare yourself, and your portfolio, to benefit from the demand for REITs that have followed the creation of a Real Estate GICS sector. The Intelligent REIT Investor gives you the information you need to invest wisely and manage your real estate risk effectively. By maintaining a tactical exposure in the brick and mortar asset class, investors should benefit from the information contained in The Intelligent REIT Investor. Join the REIT world and look forward to owning stocks that will help you to sleep well at night.
  price to tangible book value: Transforming Financial Institutions Joerg Ruetschi, 2022-04-26 Transform your financial organisation’s formula for value creation with this insightful and strategic approach In Transforming Financial Institutions through Technology Innovation and Operational Change, visionary turnaround leader Joerg Ruetschi delivers a practical and globally relevant methodology and framework for value creation at financial institutions. The author demonstrates how financial organisations can combine finance strategy with asset-liability and technology management to differentiate their services and gain competitive advantage in a ferocious industry. In addition to exploring the four critical areas of strategic and competitive transformation — financial analysis, valuation, modeling, and stress — the book includes: Explanations of how to apply the managerial fundamentals discussed in the book in the real world, with descriptions of the principles for reorganization, wind-down and overall value creation An analysis of the four key emerging technologies in the financial industry: AI, blockchain, software, and infrastructure solutions, and their transformational impact Real-world case studies and examples on how financial institutions can be repositioned and rebuilt on a path of profitability Perfect for managers and decision makers in the financial services industry, Transforming Financial Institutions through Technology Innovation and Operational Change is also required reading for regulators, tech firms, and private equity and venture capital funds.
  price to tangible book value: Business Valuation and Federal Taxes David Laro, Shannon P. Pratt, 2011-03-25 Business Valuation and Federal Taxes Procedure, Law, and Perspective SECOND EDITION Combining the expert knowledge of Senior Judge David Laro and Shannon Pratt, Business Valuation and Federal Taxes, Second Edition presents the authors' decades of experience, with advice on everything practitioners need to know about the relationship between federal taxes and valuation, and specifically valuations relating to business interests. This reference features indepth examinations of numerous topics that are particularly important to practitioners and explores a broad understanding of the basic knowledge needed to appreciate business valuation. Valuators, CPAs consulting on valuations, attorneys, corporate development officers, and intermediaries on business valuation will benefit from insightful discussions on topics ranging from general definitions to valuing complex business interests, as well as new discussions of: Personal versus enterprise goodwill New materials on transfer pricing and customs valuations and how recent markets have affected both the income and market approaches Coverage of FAS 157 and the many changes to penalties and sanctions affecting both taxpayers and appraisers Several important new court cases Coverage is also included on standards of business valuation, IRS positions, burden of proof in valuation controversies, questions to ask business valuation experts, economic and industry analysis, and tax-affecting passthrough entities. Complete with a full overview of the laws, procedures, and approaches related to business valuation, this invaluable reference is a wellspring of vital information on valuation approaches, techniques, finance-related issues, burden of proof, standards, choice of entity, and much more.
  price to tangible book value: Options Michael C. Thomsett, 2018-07-23 With over 300,000 copies sold, the new edition of this comprehensive mentoring guide clearly presents all of the essential information needed to learn to trade options. Whereas most options books focus on profit and loss opportunities, this book addresses the issues of hedging market risks in an equity portfolio head on. The author presents the compelling argument that options should not be thought of as risky stand-alone trading vehicles, but offer greater value as a coordinated strategic methodology for managing equity portfolio risks as presented in numerous examples in this book. Divided into four parts, Options reflects a guiding standard of the past nine editions and includes: Crystal clear explanations of the attributes and strategies of calls and puts. A chapter on the short life of an option. This, missing in almost every options book, is a key to understanding options trading. Examples in Part 1 showing different trading strategies on both sides of the trade. The second part of the book is about closing positions; taking profit, exercising, expirations or rolling forward your position, risk analysis, profit calculations, and the impact of volatility. The third part simplifies the complex issues of advanced strategies including the various spreads, combining spreads to successfully hedge other positions and how certain strategies work. Each spread is covered in at least one detailed example. The final part is on evaluating risk. The unquestioned benefits of hedging risk and strategies that are virtually guaranteed to succeed that are generally the domain of the investment giants along with many examples are discussed. The book’s broad coverage makes it an incredibly valuable desk reference to any trader in options. You won’t get explanations like these on the internet. Michael C. Thomsett is a market expert, author, speaker, and coach. His many books include Stock Market Math, Candlestick Charting, The Mathematics of Options, and A Technical Approach to Trend Analysis. Click here to see an interview with the author. https://youtu.be/8bgrgLB3Mx4