Importance of the Price to Book Ratio for Financial Stocks скачать в хорошем качестве

Importance of the Price to Book Ratio for Financial Stocks

In this video, N V Chandrachoodamani - our Equity Analyst - tells you the importance of the Price to Book (p/b) Ratio for Financial Stocks. You can also watch our other video on the Importance of the PE ratio here :    • What is PE Ratio? | Why do companies trade...   A high Price to Book Value (P/BV) does not necessarily mean high valuations. Market may be affording such valuation for high quality of book. A low Price to Book Value (P/BV) need not necessarily mean a stock is attractive. The market may have refused to value the stock high due to concerns in the quality of book value. Hence, knowing the quality of the book value is more important than just the Price to Book Value (P/BV) as a measure. A banking stock with an increasing trend of NPA is a red flag. Markets may be seeing this ahead of you and reduce the Price to Book Value (P/BV). This does not make it attractive unless the company has addressed the quality concerns in its book value. 📘 Read the full article here : https://primeinvestor.in/how-to-use-p... 0:00 - Introduction 0:25 - Why PB instead of PE 0:44 - Nature of Financial Business 1:50 - Balance Sheet of a bank 3:38 - What happens if 10% of the loans go bad 7:19 - Summary About PrimeInvestor : PrimeInvestor is a research solutions platform under SEBI. What that means is that we provide researched recommendations on financial products. You can see what we offer here : https://primeinvestor.in/what-is-prim... We offer recommendations across Stocks, Mutual Funds, ETFs, deposits, and term insurance. Our full suite of solutions will help you handle your investments confidently. Essentially, this is a self-service model with no-commission, no kickback and no-ads. Follow us on Social Media for daily updates! Twitter -   / primeinvestorin   Facebook -   / primeinvestor.in   LinkedIn - ​  / redwoodresearch   Instagram -   / primeinvestor.in