Episode 6 - Stock Valuation: Understanding Book Value for Beginners
APR 5, 201919 MIN
Episode 6 - Stock Valuation: Understanding Book Value for Beginners
APR 5, 201919 MIN
Description
<p><strong>Episode 6 - Stock Valuation: Stock Valuation: Understanding Book Value for Beginners</strong></p>
<p>A Video Version of this episode: <a href="http://bit.ly/2C4xqHP" rel="nofollow">http://bit.ly/2C4xqHP</a></p>
<p>1) Book value IS NOT market value!!! Book value, or equity, is an accounting construct that at times diverges from economic reality. (So just because a company is trading below book value doesn't mean it's necessarily cheap; and vice versa, not all stocks trading above 1x book value are expensive). </p>
<p>2) Here's the computation for P/B:
(method 1) = Market capitalization / equity
(method 2) = price per share / book value per share. </p>
<p>CONNECT WITH US
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<p>Credits:
Music: [Cosimo Fogg (201)] <a href="https://soundcloud.com/cosimo-fogg/ja" rel="nofollow">https://soundcloud.com/cosimo-fogg/ja</a>...... [VII 초] <a href="https://soundcloud.com/viisecs/lo-fi" rel="nofollow">https://soundcloud.com/viisecs/lo-fi</a>... [rubensoxo] <a href="https://soundcloud.com/rubensoxo/chil" rel="nofollow">https://soundcloud.com/rubensoxo/chil</a>... [dBrewin'] <a href="https://soundcloud.com/darian-brewer-" rel="nofollow">https://soundcloud.com/darian-brewer-</a>...</p>
<p>Find out more on the <a href="https://get-that-bread.pinecast.co" rel="nofollow">Get That Bread - A Value Investing Podcast website</a>.</p>
![<description><p><strong>Episode 6 - Stock Valuation: Stock Valuation: Understanding Book Value for Beginners</strong></p>
<p>A Video Version of this episode: <a href="http://bit.ly/2C4xqHP" rel="nofollow">http://bit.ly/2C4xqHP</a></p>
<p>1) Book value IS NOT market value!!! Book value, or equity, is an accounting construct that at times diverges from economic reality. (So just because a company is trading below book value doesn't mean it's necessarily cheap; and vice versa, not all stocks trading above 1x book value are expensive). </p>
<p>2) Here's the computation for P/B:
(method 1) = Market capitalization / equity
(method 2) = price per share / book value per share. </p>
<p>CONNECT WITH US
Instagram: <a href="http://www.instagram.com/getbread_official" rel="nofollow">www.instagram.com/getbread_official</a>
Facebook: <a href="http://www.facebook.com/justmakinbread" rel="nofollow">www.facebook.com/justmakinbread</a>
Twitter: <a href="https://twitter.com/justmakinbread" rel="nofollow">https://twitter.com/justmakinbread</a></p>
<p>Credits:
Music: [Cosimo Fogg (201)] <a href="https://soundcloud.com/cosimo-fogg/ja" rel="nofollow">https://soundcloud.com/cosimo-fogg/ja</a>...... [VII 초] <a href="https://soundcloud.com/viisecs/lo-fi" rel="nofollow">https://soundcloud.com/viisecs/lo-fi</a>... [rubensoxo] <a href="https://soundcloud.com/rubensoxo/chil" rel="nofollow">https://soundcloud.com/rubensoxo/chil</a>... [dBrewin'] <a href="https://soundcloud.com/darian-brewer-" rel="nofollow">https://soundcloud.com/darian-brewer-</a>...</p>
<p>Find out more on the <a href="https://get-that-bread.pinecast.co" rel="nofollow">Get That Bread - A Value Investing Podcast website</a>.</p>
</description>](https://us-central1-podcastguru-217d6.cloudfunctions.net/gcf_get_image?image_url=https://storage.pinecast.net/podcasts/covers/9c6e62ca-9d35-4c61-a48a-e93752b20a96/0_-_GTB_-_Black_White__Small_.jpg&width=300&height=300&api_key=xqFmUFX5BHLBTA)
