Book value – Medielys http://www.medielys.com/ Wed, 15 Sep 2021 20:17:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://www.medielys.com/wp-content/uploads/2021/08/favicon-2-150x150.png Book value – Medielys http://www.medielys.com/ 32 32 Ellington Financial announces estimated book value per common share as at August 31, 2021 http://www.medielys.com/2021/09/15/ellington-financial-announces-estimated-book-value-per-common-share-as-at-august-31-2021/ Wed, 15 Sep 2021 20:17:00 +0000 http://www.medielys.com/2021/09/15/ellington-financial-announces-estimated-book-value-per-common-share-as-at-august-31-2021/ OLD GREENWICH, Connecticut – (COMMERCIAL THREAD) – Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced its estimated book value per common share of $ 18.30 as at August 31, 2021. This estimate includes the effect of the announced monthly dividend previously $ 0.15 per common share, payable on September 27, 2021 to holders of […]]]>

OLD GREENWICH, Connecticut – (COMMERCIAL THREAD) – Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced its estimated book value per common share of $ 18.30 as at August 31, 2021. This estimate includes the effect of the announced monthly dividend previously $ 0.15 per common share, payable on September 27, 2021 to holders of record on August 31, 2021, with an ex-dividend date of August 30, 2021.

Warnings

The estimated book value per common share is subject to change upon completion of the Company’s month-end and quarter-end valuation procedures relating to its investment positions, and such change could be material. There can be no assurance that the estimated book value per common share of the Company as at August 31, 2021 is indicative of what the Company’s results are likely to be for the three-month or nine-month period ending September 30, 2021 or as of September 30, 2021. to come up. periods, and the Company assumes no obligation to update or revise its estimated book value per common share prior to the issuance of financial statements for such periods.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve many risks and uncertainties. The actual results of the Company may differ from its beliefs, expectations, estimates and projections and, therefore, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and may be identified by words such as “believe”, “expect”, “anticipate”, “estimate”, “project”, “plan”, “continue”, ” intend “” should “,” would “,” could “,” goal “,” objective “,” will “,” may “,” research “or similar expressions or their negative forms, or by references to a strategy, plans or intentions. Examples of forward-looking statements in this press release include statements regarding the book value per common share of the Company. The Company’s results may fluctuate from month to month and quarter to quarter depending on a variety of factors, some of which are beyond the control of the Company and / or are difficult to predict, including, without limited thereto, variations in interest rates and market value. investments of the Company, changes in mortgage default rates and prepayment rates, the ability of the Company to borrow to finance its assets, changes in government regulations affecting the activities of the Company, the Company’s ability to maintain its exclusion from registration under the Investment Company Act of 1940, the Company’s ability to maintain its qualification as a real estate investment trust, or “REIT”, and others changes in market conditions and economic trends, including changes resulting from the economic effects of the COVID-19 pandemic, and responses associated with the pandemic. In addition, forward-looking statements are subject to risks and uncertainties, including, but not limited to, those described in Section 1A of the Company’s Annual Report on Form 10-K, as amended, which can be viewed on the website Company web at www.ellingtonfinancial .com or on the SEC website (www.sec.gov). Other risks, uncertainties and factors which could cause actual results to differ materially from those projected may be described from time to time in the reports that the Company files with the SEC, including reports on Forms 10- Q, 10-K and 8-K. The Company assumes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

This press release and the information it contains do not constitute an offer of securities or a solicitation of an offer to purchase securities.

About Ellington Financial

Ellington Financial invests in a wide range of financial assets including residential and commercial mortgages, residential and commercial mortgage-backed securities, consumer loans, and consumer-backed asset-backed securities. , secured loan bonds, non-mortgage and mortgage derivatives, equity investments in loan origination companies and other strategic investments. Ellington Financial is managed and externally advised by Ellington Financial Management LLC, a subsidiary of Ellington Management Group, LLC


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Definition of book value per share (BVPS) http://www.medielys.com/2021/09/02/definition-of-book-value-per-share-bvps/ Thu, 02 Sep 2021 07:00:00 +0000 http://www.medielys.com/2021/09/02/definition-of-book-value-per-share-bvps/ What is book value per share (BVPS)? Book value per share (BVPS) is the ratio of equity available to common shareholders divided by the number of shares outstanding. This number represents the minimum value of a company’s equity and measures a company’s book value per share. Key points to remember Book value per share (BVPS) […]]]>

What is book value per share (BVPS)?

Book value per share (BVPS) is the ratio of equity available to common shareholders divided by the number of shares outstanding. This number represents the minimum value of a company’s equity and measures a company’s book value per share.

Key points to remember

  • Book value per share (BVPS) takes the ratio of a company’s common equity divided by its number of shares outstanding.
  • The book value of equity per share effectively indicates a company’s net asset value (total assets – total liabilities) per share.
  • When a stock is undervalued, its book value per share will be higher than its current market price.
  • BVPS is primarily used by stock investors to assess a company’s stock price.

Book value of equity per share (BVPS)

Understanding Book Value Per Share (BVPS)

Book Value Per Share (BVPS) can be used by investors to assess whether a stock’s price is undervalued by comparing it to the market value per share of the company. If a company’s BVPS is higher than its market value per share (the current price of its stock), then the stock is considered undervalued. If the company’s BVPS increases, the stock should be perceived as more valuable and the stock price should rise.

In theory, BVPS is the sum that shareholders would receive in the event of a business liquidation, disposal of all tangible assets, and payment of all liabilities. However, since the assets would be sold at market prices and the book value uses the historical costs of the assets, the market value is considered a better floor price than the book value for a company.

If a company’s stock price falls below its BVPS, a corporate raider could make a risk-free profit by buying the company and liquidating it. If the book value is negative, when a company’s liabilities exceed its assets, it is called balance sheet insolvency.

The formula for BVPS is:



B

V

P

S


=




Total equity



Preferred shares


Total shares outstanding



BVPS = frac { text {Total equity} – text {Preferred Equity}} { text {Total shares outstanding}}


BVPS = Total shares outstandingTotal equity Preferred shares

Equity is the owners’ residual claim in the business after debts have been paid. It is equal to the total assets of a business minus its total liabilities, which is the net asset value or book value of the business as a whole.

Since preferred shareholders have a higher right to assets and profits than common shareholders, preferred shares are subtracted from equity to obtain equity available to common shareholders.

Example of book value per share (BVPS)


Suppose, for example, that the common stock balance of XYZ Manufacturing is $ 10 million and one million common shares are outstanding. This means that the BVPS is ($ 10 million / 1 million shares), or $ 10 per share. If XYZ can generate higher profits and use those profits to buy more assets or reduce liabilities, the company’s equity increases.

If, for example, the company generates $ 500,000 in profit and uses $ 200,000 of the profit to buy assets, common stock increases with BVPS. If XYZ uses $ 300,000 of its profits to reduce liabilities, ordinary equity also increases.

Another way to increase BVPS is to buy back common stock from shareholders. Many companies use the profits to buy back stocks. Using the XYZ example, suppose the company repurchases 200,000 shares and 800,000 shares remain outstanding. If common equity is $ 10 million, BVPS increases to $ 12.50 per share. Besides share buybacks, a company can also increase BVPS by taking steps to increase asset balance and reduce liabilities.

Market value per share versus book value per share

While BVPS is calculated using historical costs, market value per share is a forward-looking measure that takes into account a company’s future earning capacity. An increase in a company’s potential profitability or expected growth rate should increase the market value per share.

For example, a marketing campaign will reduce BVPS by increasing costs. However, if this builds brand value and the company is able to charge higher prices for its products, its stock price could far exceed its BVPS.

What Does Book Value Per Share (BVPS) Tell You?

In theory, BVPS is the sum that shareholders would receive in the event of a business liquidation, disposal of all tangible assets, and payment of all liabilities. However, its value lies in the fact that investors use it to assess whether a stock’s price is undervalued by comparing it to the company’s market value per share. If a company’s BVPS is higher than its market value per share, which is its current share price, then the stock is considered undervalued.

How can businesses increase BVPS?

A company can use part of its profits to buy assets that would increase common stock with BVPS. Or, it could use its profits to reduce its liabilities, which would also lead to an increase in its common equity and BVPS. Another way to increase BVPS is to buy back common stock from shareholders and many companies use the profits to buy back stock.

How does BVPS differ from market value per share?

While BVPS is calculated using historical costs, market value per share is a forward-looking measure that takes into account a company’s future earning capacity. An increase in a company’s potential profitability or expected growth rate should increase the market value per share. Essentially, the market price per share is the current price of a single share in a publicly traded share. Unlike BVPS, the market price per share is not fixed as it only fluctuates according to the market forces of supply and demand.


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Ellington Financial Announces Estimated Book Value Per Common Share as of July 31, 2021 | 2021-08-16 | Press Releases http://www.medielys.com/2021/08/16/ellington-financial-announces-estimated-book-value-per-common-share-as-of-july-31-2021-2021-08-16-press-releases/ Mon, 16 Aug 2021 21:15:40 +0000 http://www.medielys.com/2021/08/16/ellington-financial-announces-estimated-book-value-per-common-share-as-of-july-31-2021-2021-08-16-press-releases/ Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced its estimated book value per common share of $ 18.29 as at July 31, 2021. This estimate includes the effect of the previously announced monthly dividend of 0 , $ 15 per common share, payable on August 25, 2021 to holders of record on July 30, […]]]>

Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced its estimated book value per common share of $ 18.29 as at July 31, 2021. This estimate includes the effect of the previously announced monthly dividend of 0 , $ 15 per common share, payable on August 25, 2021 to holders of record on July 30, 2021, with an ex-dividend date of July 29, 2021.

Warnings

The estimated book value per common share is subject to change upon completion of the Company’s month-end and quarter-end valuation procedures relating to its investment positions, and such change could be material. There can be no assurance that the estimated book value per common share of the Company as at July 31, 2021 is indicative of what the Company’s results are likely to be for the three-month or nine-month period ending September 30, 2021 or as of September 30, 2021. to come up. periods, and the Company assumes no obligation to update or revise its estimated book value per common share prior to the issuance of financial statements for such periods.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve many risks and uncertainties. The actual results of the Company may differ from its beliefs, expectations, estimates and projections and, therefore, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and may be identified by words such as “believe”, “expect”, “anticipate”, “estimate”, “project”, “plan”, “continue”, “have intention “” should “,” would “,” could “,” goal “,” objective “,” will “,” can “,” research “or similar expressions or their negative forms, or by references to a strategy, plans or intentions. Examples of forward-looking statements in this press release include statements regarding the book value per common share of the Company. The Company’s results may fluctuate from month to month and quarter to quarter depending on a variety of factors, some of which are beyond the control of the Company and / or are difficult to predict, including, without limited thereto, variations in interest rates and market value. the Company’s investments, changes in mortgage default rates and prepayment rates, the Company’s ability to borrow to finance its assets, changes in government regulations affecting the Company’s business, the Company’s ability to maintain its exclusion from registration under the Investment Company Act of 1940, the Company’s ability to maintain its qualification as a real estate investment trust, or “REIT”, and others changes in market conditions and economic trends, including changes resulting from the economic effects of the COVID-19 pandemic, and responses associated with the pandemic. In addition, forward-looking statements are subject to risks and uncertainties, including, but not limited to, those described in Section 1A of the Company’s Annual Report on Form 10-K, as amended, which can be viewed on the Company website at www.ellingtonfinancial .com or on the SEC website (www.sec.gov). Other risks, uncertainties and factors that could cause actual results to differ materially from those anticipated may be described from time to time in reports that the Company files with the SEC, including reports on Forms 10-Q, 10 -K and 8-K. The Company assumes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

This press release and the information it contains do not constitute an offer of securities or a solicitation of an offer to purchase securities.

About Ellington Financial

Ellington Financial invests in a wide range of financial assets including residential and commercial mortgages, residential and commercial mortgage-backed securities, consumer loans, and consumer-backed asset-backed securities. , secured loan bonds, non-mortgage and mortgage derivatives, equity investments in loan origination companies and other strategic investments. Ellington Financial is managed and externally advised by Ellington Financial Management LLC, a subsidiary of Ellington Management Group, LLC


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Ellington Financial announces estimated book value per common share as of July 31, 2021 http://www.medielys.com/2021/08/16/ellington-financial-announces-estimated-book-value-per-common-share-as-of-july-31-2021/ Mon, 16 Aug 2021 21:00:00 +0000 http://www.medielys.com/2021/08/16/ellington-financial-announces-estimated-book-value-per-common-share-as-of-july-31-2021/ News and research before you hear about it on CNBC and others. Claim your 1-week free trial for StreetInsider Premium here. OLD GREENWICH, Connecticut – (BUSINESS WIRE) – Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced its estimated book value per common share of $ 18.29 as of July 31, 2021. This estimate includes […]]]>

News and research before you hear about it on CNBC and others. Claim your 1-week free trial for StreetInsider Premium here.


OLD GREENWICH, Connecticut – (BUSINESS WIRE) – Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced its estimated book value per common share of $ 18.29 as of July 31, 2021. This estimate includes the effect of the previously announced monthly dividend of $ 0.15 per common share, payable on August 25, 2021 to holders of record on July 30, 2021, with an ex-dividend date of July 29, 2021.

Warnings

The estimated book value per common share is subject to change upon completion of the Company’s month-end and quarter-end valuation procedures relating to its investment positions, and such change could be material. There can be no assurance that the estimated book value per common share of the Company as at July 31, 2021 is indicative of what the Company’s results are likely to be for the three-month or nine-month period ending September 30, 2021 or as of September 30, 2021. to come up. periods, and the Company assumes no obligation to update or revise its estimated book value per common share prior to the issuance of financial statements for such periods.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve many risks and uncertainties. The actual results of the Company may differ from its beliefs, expectations, estimates and projections and, therefore, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and may be identified by words such as “believe”, “expect”, “anticipate”, “estimate”, “project”, “plan”, “continue”, “have intention “” should “,” would “,” could “,” goal “,” objective “,” will “,” can “,” research “or similar expressions or their negative forms, or by references to a strategy, plans or intentions. Examples of forward-looking statements in this press release include statements regarding the book value per common share of the Company. The Company’s results may fluctuate from month to month and quarter to quarter depending on a variety of factors, some of which are beyond the control of the Company and / or are difficult to predict, including, without limited thereto, variations in interest rates and market value. the Company’s investments, changes in mortgage default rates and prepayment rates, the Company’s ability to borrow to finance its assets, changes in government regulations affecting the Company’s business, the Company’s ability to maintain its exclusion from registration under the Investment Company Act of 1940, the Company’s ability to maintain its qualification as a real estate investment trust, or “REIT”, and others changes in market conditions and economic trends, including changes resulting from the economic effects of the COVID-19 pandemic, and responses associated with the pandemic. In addition, forward-looking statements are subject to risks and uncertainties, including, but not limited to, those described in Section 1A of the Company’s Annual Report on Form 10-K, as amended, which can be viewed on the Company website at www.ellingtonfinancial .com or on the SEC website (www.sec.gov). Other risks, uncertainties and factors that could cause actual results to differ materially from those anticipated may be described from time to time in reports that the Company files with the SEC, including reports on Forms 10-Q, 10 -K and 8-K. The Company assumes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

This press release and the information it contains do not constitute an offer of securities or a solicitation of an offer to purchase securities.

About Ellington Financial

Ellington Financial invests in a wide range of financial assets including residential and commercial mortgages, residential and commercial mortgage-backed securities, consumer loans, and consumer-backed asset-backed securities. , secured loan bonds, non-mortgage and mortgage derivatives, equity investments in loan origination companies and other strategic investments. Ellington Financial is managed and externally advised by Ellington Financial Management LLC, a subsidiary of Ellington Management Group, LLC

Investors:

Ellington Financial Inc.

Investor Relations

(203) 409-3575

info@ellingtonfinancial.com

Where

Media:

Amanda Klein or Kevin FitzGerald

Gasthalter & Cie.

for Ellington Financial

(212) 257-4170

Ellington@gasthalter.com

Source: Ellington Financial Inc.


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Definition of price at tangible book value (PTBV) http://www.medielys.com/2021/08/15/definition-of-price-at-tangible-book-value-ptbv/ Sun, 15 Aug 2021 07:00:00 +0000 http://www.medielys.com/2021/08/15/definition-of-price-at-tangible-book-value-ptbv/ What is price at tangible book value (PTBV)? The price at tangible book value (PTBV) is a valuation ratio expressing the price of a security in relation to the book value of its tangible or tangible assets as it appears on the company’s balance sheet. The number of tangible book value equals the total book […]]]>

What is price at tangible book value (PTBV)?

The price at tangible book value (PTBV) is a valuation ratio expressing the price of a security in relation to the book value of its tangible or tangible assets as it appears on the company’s balance sheet.

The number of tangible book value equals the total book value of the business less than the value of any intangible asset. Intangible assets would be balance sheet items such as patents, intellectual property (IP), goodwill, etc.

Key points to remember

  • Price at tangible book value (PTBV) measures the market value of a business relative to its tangible or tangible assets, excluding the value of all intangible assets.
  • The number of tangible book value equals the total book value of the business less than the value of any intangible asset.
  • Intangible assets can be items such as patents, intellectual property, goodwill, etc.

Understand the price versus the tangible book value

A tangible asset (hard asset) is an asset owned by a business that can be physically touched or manipulated. Examples include machinery, equipment, raw materials, inventory, vehicles, goods, etc.

In theory, the tangible book value of a share per share represents the amount of money an investor would receive for each share if a company were to go out of business and liquidate all of its assets at the value recorded in the company’s books. business.

In general, stocks that trade at higher tangible price-to-book ratios have the potential to leave investors with larger price losses than those that trade at lower ratios, since tangible book value per share may reasonably be regarded as the lowest price at which a stock could trade.

The formula for PTBV is

PTBV = share price / tangible book value per share

Or:

  • The share price is the current market price per share.
  • The tangible book value per share (TBVPS) is equal to the total tangible assets divided by the total number of shares outstanding.

When to use the PTBV

PTBV mainly applies to industrial or capital-intensive companies that have a relatively high proportion of durable assets, as opposed to companies that engage in light manufacturing or service-oriented industries.

PTBV is rather meaningless as a valuation measure in the tech industry, for example, because so much of a company’s valuation stems from intellectual property, an intangible asset. An investor should also be careful with PTBV for companies that have long held land. The land is valued at historical cost, not increased each year in the balance sheet; therefore, PTBV can result in a deceptively high ratio.

Example of price versus tangible book value

At the end of 2020, General Motors’ tangible book value was $ 44.44 billion (total assets of $ 235.19 billion minus $ 5.23 billion of goodwill and intangible assets minus $ 185.52 billion. dollars in liabilities). $ 1.4 billion of shares were outstanding, resulting in a tangible book value per share of $ 31.74.

GM’s closing price per share on the last day of 2020 was $ 41.64. Therefore, the PTBV was $ 41.64 / $ 31.74, or 1.31. An analyst could study the evolution of this ratio or compare it to those of his peer group.

Frequently Asked Questions

How does the PTBV differ from the price per book (P / B)?

These two measures are almost identical, except that P / B will include the carrying amount of all assets, including intangibles. The PTBV excludes intangible assets such as intellectual property (patents, brands, etc.) and goodwill.

When is PTBV most useful?

Today, many companies derive great value from intangible assets and may not have a lot of tangible assets on their balance sheet. Thus, PTBV is most useful when evaluating capital-intensive companies that rely on durable assets, such as manufacturers or in natural resource industries.

What does the PTBV represent?

The PTBV represents the market value of a company’s shares as a multiple of the amount it would receive if it sold all of its hard assets.


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7 low book value choices for August http://www.medielys.com/2021/08/11/7-low-book-value-choices-for-august/ Wed, 11 Aug 2021 07:00:00 +0000 http://www.medielys.com/2021/08/11/7-low-book-value-choices-for-august/ While there are a multitude of valuation metrics, the first that comes to mind is the price / earnings ratio. However, in the case of loss-making companies, the price / earnings ratio is negative. In such a scenario, the price / sales ratio could indicate the hidden strength of the business. The price-to-book ratio (P […]]]>

While there are a multitude of valuation metrics, the first that comes to mind is the price / earnings ratio. However, in the case of loss-making companies, the price / earnings ratio is negative. In such a scenario, the price / sales ratio could indicate the hidden strength of the business.

The price-to-book ratio (P / E ratio) is also an easy-to-use tool for identifying low-priced stocks that have strong growth prospects.

The P / B ratio is used to calculate how much an investor must pay for each dollar of a stock’s book value. It is calculated by dividing the current closing share price by the book value per share for the last quarter.

What is book value?

There are several ways to define the book value. Book value is the total value that would remain, according to the company’s balance sheet, in the event of immediate bankruptcy. In other words, this is what shareholders would theoretically receive if a company liquidated all of its assets after paying off all of its liabilities.

It is calculated by subtracting total liabilities from total assets of a business. In most cases, this is equivalent to common shareholders’ equity on the balance sheet. However, according to the company’s balance sheet, intangible assets must also be subtracted from total assets to determine book value.

Understanding the P / B Ratio

By comparing the book value of equity to its market price, we get an idea of ​​whether a company is undervalued or overvalued. However, like the P / E or P / S ratio, it is always best to compare P / N ratios within industries.

An AP / E ratio of less than one means the stock is trading below its book value or the stock is undervalued and therefore is a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overpriced or relatively expensive.

For example, a stock with a P / N ratio of 2 means we pay $ 2 for every $ 1 of book value. Thus, the higher the P / B, the more expensive the action.

But there is a caveat. An AP / E ratio of less than one can also mean that the company is generating low or even negative returns on its assets, or that the assets are overvalued, in which case the stock should be avoided as it can destroy shareholder value. Conversely, the share price can be considerably high – thus pushing the P / B ratio to more than one – in the probable event that it has become a takeover target, reason enough to hold the share. ‘action.

In addition, the P / B ratio is not without limits. It is useful for businesses – like finance, investment, insurance, and banking or manufacturing companies – with many liquid / tangible assets on the books. However, it can be misleading for companies with large R&D spending, high debt, service companies, or those with negative profits.

In any case, the ratio is not particularly relevant as a stand-alone number. Other ratios such as P / E, P / S and debt / equity should be analyzed before arriving at a reasonable investment decision.

Screening parameters

Price to Book (Common Equity) below the X-Industry median: A P / B below the industry average implies that there is enough room for the stock to win.

Sales price below the X-Industry median: The P / S ratio determines the market value for every dollar of the company’s sales / revenue – a lower ratio than the industry makes the stock attractive.

Price / earnings using the F (1) estimate lower than the X-Industry median: The P / E (F1) ratio rates a company based on its current share price relative to its estimated earnings per share – a lower ratio than the industry is considered better.

PEG less than 1: The PEG relates the P / E ratio to the company’s future growth rate. The PEG report gives a more complete picture than the P / E report. A value less than 1 indicates that the stock is undervalued and that investors should pay less for a stock that has good prospects for earnings growth.

Current price greater than or equal to $ 5: They must all trade at a minimum of $ 5 or more.

Average volume over 20 days greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.

Rank of Zacks less than or equal to # 2: Zacks Rank # 1 (Strong Buy) or 2 (Buy) stocks are known to outperform regardless of the market environment.

Value Score Equal to A or B: Our research shows that stocks with a value score of A or B when combined with a Zacks # 1 or 2 rank offer the best opportunities in the value investing space. .

Here are seven of the 23 actions that qualified the screening:

Bassett Furniture Industries, Incorporated BSET, a furniture company, has a 3 to 5 year EPS growth rate of 16%. He currently has a Zacks Rank # 1 and a Value Score of A. You can see the full list of Zacks # 1 Rank stocks today here.

Conn’s CONN, a retailer specializing in home appliances, has a projected 3 to 5 year BPA growth rate of 23%. He currently has a Zacks # 1 rank and a value score of A.

Celestica CLS, an electronics manufacturing services company, has a projected 3 to 5 year EPS growth rate of 10.2%. He currently has a Zacks Rank # 2 and a Value Score of A.

Group 1 Automotive GPI, a leading automotive retailer, has a projected EPS growth rate of 8.4% over 3 to 5 years. He currently has a Zacks Rank # 1 and a Value Score of A.

Affiliated Managers Group AMG, a global asset management company, has a Zacks Rank # 2 and a Value Score of A. The company has a 3 to 5 year projected EPS growth rate of 15.0%.

Valley VALE, one of the largest mining companies in the world, has a Zacks Rank # 1 and a Value Score of A. The company has a 3 to 5 year projected EPS growth rate of 30.7%.

Envista Holding Company NVST, a dental products company, forecast a 3-5 year BPA growth rate of 27.4%. He currently has a Zacks Rank # 2 and a Value Score of B.

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Disclosure: Officers, directors and / or employees of Zacks Investment Research may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document. An affiliated investment advisory firm may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document.

Disclosure: Information on the performance of Zacks’ portfolios and strategies can be found at: https://www.zacks.com/performance

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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7 low book value choices for August http://www.medielys.com/2021/08/11/7-low-book-value-choices-for-august-2/ Wed, 11 Aug 2021 07:00:00 +0000 http://www.medielys.com/2021/08/11/7-low-book-value-choices-for-august-2/ While there are a multitude of valuation metrics, the first that comes to mind is the price / earnings ratio. However, in the case of loss-making companies, the price / earnings ratio is negative. In such a scenario, the price / sales ratio could indicate the hidden strength of the business. The price-to-book ratio (P […]]]>

While there are a multitude of valuation metrics, the first that comes to mind is the price / earnings ratio. However, in the case of loss-making companies, the price / earnings ratio is negative. In such a scenario, the price / sales ratio could indicate the hidden strength of the business.

The price-to-book ratio (P / E ratio) is also an easy-to-use tool for identifying low-priced stocks that have strong growth prospects.

The P / B ratio is used to calculate how much an investor must pay for each dollar of a stock’s book value. It is calculated by dividing the current closing share price by the book value per share for the last quarter.

What is book value?

There are several ways to define the book value. Book value is the total value that would remain, according to the company’s balance sheet, in the event of immediate bankruptcy. In other words, this is what shareholders would theoretically receive if a company liquidated all of its assets after paying off all of its liabilities.

It is calculated by subtracting total liabilities from total assets of a business. In most cases, this is equivalent to common shareholders’ equity on the balance sheet. However, according to the company’s balance sheet, intangible assets must also be subtracted from total assets to determine book value.

Understanding the P / B Ratio

By comparing the book value of equity to its market price, we get an idea of ​​whether a company is undervalued or overvalued. However, like the P / E or P / S ratio, it is always best to compare P / N ratios within industries.

An AP / E ratio of less than one means the stock is trading below its book value or the stock is undervalued and therefore is a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overpriced or relatively expensive.

For example, a stock with a P / N ratio of 2 means we pay $ 2 for every $ 1 of book value. Thus, the higher the P / B, the more expensive the action.

But there is a caveat. An AP / E ratio of less than one can also mean that the company is generating low or even negative returns on its assets, or that the assets are overvalued, in which case the stock should be avoided as it can destroy shareholder value. Conversely, the share price can be considerably high – thus pushing the P / B ratio to more than one – in the probable event that it has become a takeover target, reason enough to hold the share. ‘action.

In addition, the P / B ratio is not without limits. It is useful for businesses – like finance, investment, insurance, and banking or manufacturing companies – with many liquid / tangible assets on the books. However, it can be misleading for companies with large R&D spending, high debt, service companies, or those with negative profits.

In any case, the ratio is not particularly relevant as a stand-alone number. Other ratios such as P / E, P / S and debt / equity need to be analyzed before arriving at a reasonable investment decision.

Screening parameters

Price to Book (Common Equity) below the X-Industry median: A P / B below the industry average implies that there is enough room for the stock to win.

Sales price below the X-Industry median: The P / S ratio determines the market value for every dollar of the company’s sales / revenue – a lower ratio than the industry makes the stock attractive.

Price / earnings using the F (1) estimate lower than the X-Industry median: The P / E (F1) ratio rates a company based on its current stock price relative to its estimated earnings per share – a lower ratio than the industry is considered better.

PEG less than 1: The PEG links the P / E ratio to the company’s future growth rate. The PEG report gives a more complete picture than the P / E report. A value less than 1 indicates that the stock is undervalued and that investors should pay less for a stock that has good prospects for earnings growth.

Current price greater than or equal to $ 5: They must all trade at a minimum of $ 5 or more.

Average volume over 20 days greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.

Rank of Zacks less than or equal to # 2: Zacks Rank # 1 (Strong Buy) or 2 (Buy) stocks are known to outperform regardless of the market environment.

Value Score Equal to A or B: Our research shows that stocks with a value score of A or B when combined with a Rank 1 or 2 of Zacks offer the best opportunities in the value investing space. .

Here are seven of the 23 actions that qualified the screening:

Bassett Furniture Industries, Incorporated BSET, a furniture company, has a 3 to 5 year EPS growth rate of 16%. He currently has a Zacks Rank # 1 and a Value Score of A. You can see the full list of Zacks # 1 Rank stocks today here.

Conn’s CONN, a retailer specializing in home appliances, has a projected 3 to 5 year BPA growth rate of 23%. He currently has a Zacks # 1 rank and a value score of A.

Celestica CLS, an electronics manufacturing services company, has a projected 3 to 5 year EPS growth rate of 10.2%. He currently has a Zacks Rank # 2 and a Value Score of A.

Group 1 Automotive GPI, a leading automotive retailer, has a projected EPS growth rate of 8.4% over 3 to 5 years. He currently has a Zacks Rank # 1 and a Value Score of A.

Affiliated Managers Group AMG, a global asset management company, has a Zacks Rank # 2 and a Value Score of A. The company has a 3 to 5 year projected EPS growth rate of 15.0%.

Valley VALE, one of the largest mining companies in the world, has a Zacks Rank # 1 and a Value Score of A. The company has a 3 to 5 year projected EPS growth rate of 30.7%.

Envista Holding Company NVST, a dental products company, forecast a 3-5 year BPA growth rate of 27.4%. He currently has a Zacks Rank # 2 and a Value Score of B.

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The research assistant is a great place to start. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your research assistant trial today. And the next time you read an economic report, open the research assistant, plug in your findings, and see what gems come out of it.

Click here to sign up for a free trial of the Research Assistant today.

Disclosure: Officers, directors and / or employees of Zacks Investment Research may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document. An affiliated investment advisory firm may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document.

Disclosure: Information on the performance of Zacks’ portfolios and strategies can be found at: https://www.zacks.com/performance

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Celestica, Inc. (CLS): Free Stock Analysis Report

Conns, Inc. (CONN): Free Stock Analysis Report

Group 1 Automotive, Inc. (GPI): Free Inventory Analysis Report

Affiliated Managers Group, Inc. (AMG): Free Inventory Analysis Report

Bassett Furniture Industries, Incorporated (BSET): Free Stock Analysis Report

Envista Holdings Corporation (NVST): Free share analysis report

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Annaly (NLY) Earnings above estimate for second quarter, NII and decrease in book value http://www.medielys.com/2021/07/29/annaly-nly-earnings-above-estimate-for-second-quarter-nii-and-decrease-in-book-value-2/ Thu, 29 Jul 2021 15:19:03 +0000 http://www.medielys.com/2021/07/29/annaly-nly-earnings-above-estimate-for-second-quarter-nii-and-decrease-in-book-value-2/ Annaly Capital Management, Inc. NLY announced second quarter 2021 earnings available for distribution (EAD), formerly known as basic earnings per share excluding premium amortization adjustment (“PAA”), of 30 cents, exceeding estimate of the Zacks consensus of 27 cents. The figure compares favorably with the 27 cents in the previous year’s quarter. Net Interest Income (NII) […]]]>

Annaly Capital Management, Inc. NLY announced second quarter 2021 earnings available for distribution (EAD), formerly known as basic earnings per share excluding premium amortization adjustment (“PAA”), of 30 cents, exceeding estimate of the Zacks consensus of 27 cents. The figure compares favorably with the 27 cents in the previous year’s quarter.

Net Interest Income (NII) was $ 322.9 million, behind the Zacks consensus estimate of $ 412.3 million. The figure is down 19% year over year.

While record financing costs and a higher average return on interest-earning assets supported Annaly, the company saw a sequential decline in book value per share (BVPS).

Annaly is in the process of selling her commercial real estate business to Slate Asset Management for $ 2.33 billion. This will reduce exposure to the commercial real estate sector and provide the ability to increase investment in the residential mortgage finance market. After the end of the second quarter, the company has transferred the platform and the majority of the assets, while the rest are expected to be transferred by the end of the third quarter of 2021.

In the headlines

At the end of the second quarter, the company had $ 92.9 billion in total assets. At the end of the second quarter of 2021, unencumbered assets stood at $ 9.6 billion.

Annaly sequentially increased her capital allocation to the residential lending business from 13% to 19% in the second quarter, supported by $ 1 billion in full loan purchases.

During the quarter under review, the average return on interest-bearing assets (excluding PAA) was 2.76%, up from 2.71% in the previous quarter.

The net interest spread (excluding PAA) of 1.93% for the second quarter increased from 1.84% in the previous quarter. The net interest margin (excluding PAA) in the reported quarter was 2.09% compared to 1.91% in the first quarter of 2021.

Annaly’s BVPS was $ 8.37 as of June 30, 2021, down sequentially from $ 8.95. In addition, BVPS compares unfavorably with $ 8.39 as of June 30, 2020. At the end of the current quarter, the company’s economic capital ratio was 14.3%, compared to 13.7% in the previous quarter.

For the end of June quarter, the weighted average real constant prepayment rate was 26.4%, up sequentially from 23.9%.

The economic leverage was 5.8X as of June 30, 2021, compared to 6.1X in the previous quarter. The company generated an annualized EAD return on average equity (excluding PAA) of 13.05% in the second quarter, up from 12.53% in the previous quarter.

Annaly currently wears a Zacks Rank # 4 (Sell).

You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Annaly Capital Management Inc Price, Consensus and BPA Surprise

Annaly Capital Management Inc Price, Consensus and BPA Surprise

Annaly Capital Management Inc price-consensus-eps-surprise-chart | Quote Annaly Capital Management Inc

Performance and profit dates of other REITs

AGNC Investment Corp. AGNC reported a net spread and second-quarter 2021 dollar income (excluding estimated catch-up premium amortization costs) of 76 cents per share, beating Zacks’ consensus estimate of 64 cents. The published figure improved from the 58-cent figure in the second quarter of 2020.

We now look forward to the results of other mortgage REITs like Arbor Realty Trust, Inc. A brand Chimera investment company CIM, which are expected to release their results on July 30 and August 4, respectively.

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

AGNC Investment Corp. (AGNC): Free shares analysis report

Arbor Realty Trust (ABR): Free Stock Analysis Report

Annaly Capital Management Inc (NLY): Free Stock Analysis Report

Chimera Investment Corporation (CIM): Free Stock Analysis Report

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Annaly (NLY) Earnings above estimate for second quarter, NII and decrease in book value http://www.medielys.com/2021/07/29/annaly-nly-earnings-above-estimate-for-second-quarter-nii-and-decrease-in-book-value/ Thu, 29 Jul 2021 15:19:00 +0000 http://www.medielys.com/2021/07/29/annaly-nly-earnings-above-estimate-for-second-quarter-nii-and-decrease-in-book-value/ Annaly Capital Management, Inc. NLY announced second quarter 2021 earnings available for distribution (EAD), formerly known as basic earnings per share excluding premium amortization adjustment (“PAA”), of 30 cents, exceeding estimate of the Zacks consensus of 27 cents. The figure compares favorably with the 27 cents in the previous year’s quarter. Net Interest Income (NII) […]]]>

Annaly Capital Management, Inc. NLY announced second quarter 2021 earnings available for distribution (EAD), formerly known as basic earnings per share excluding premium amortization adjustment (“PAA”), of 30 cents, exceeding estimate of the Zacks consensus of 27 cents. The figure compares favorably with the 27 cents in the previous year’s quarter.

Net Interest Income (NII) was $ 322.9 million, behind the Zacks consensus estimate of $ 412.3 million. The figure was down 19% year-on-year.

While record funding costs and higher average return on interest-earning assets supported Annaly, the company saw a sequential decline in book value per share (BVPS).

Annaly is in the process of selling her commercial real estate business to Slate Asset Management for $ 2.33 billion. This will reduce exposure to the commercial real estate sector and provide the ability to increase investment in the residential mortgage finance market. After the end of the second quarter, the company has transferred the platform and the majority of the assets, while the rest are expected to be transferred by the end of the third quarter of 2021.

In the headlines

At the end of the second quarter, the company had $ 92.9 billion in total assets. At the end of the second quarter of 2021, unencumbered assets stood at $ 9.6 billion.

Annaly sequentially increased her capital allocation to the residential lending business from 13% to 19% in the second quarter, supported by $ 1 billion in full loan purchases.

During the quarter under review, the average return on interest-bearing assets (excluding PAA) was 2.76%, up from 2.71% in the previous quarter.

The net interest spread (excluding PAA) of 1.93% for the second quarter increased from 1.84% in the previous quarter. The net interest margin (excluding PAA) in the reported quarter was 2.09% compared to 1.91% in the first quarter of 2021.

Annaly’s BVPS was $ 8.37 as of June 30, 2021, down sequentially from $ 8.95. In addition, BVPS compares unfavorably with $ 8.39 as of June 30, 2020. At the end of the current quarter, the company’s economic capital ratio was 14.3%, compared to 13.7% in the previous quarter.

For the end of June quarter, the weighted average real constant prepayment rate was 26.4%, up sequentially from 23.9%.

The economic leverage was 5.8X as of June 30, 2021, compared to 6.1X in the previous quarter. The company generated an annualized EAD return on average equity (excluding PAA) of 13.05% in the second quarter, up from 12.53% in the previous quarter.

Annaly currently wears a Zacks Rank # 4 (Sell).

You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Annaly Capital Management Inc Price, Consensus and BPA Surprise

Annaly Capital Management Inc price-consensus-eps-surprise-chart | Quote Annaly Capital Management Inc

Performance and profit dates of other REITs

AGNC Investment Corp. AGNC reported a net spread and second-quarter 2021 dollar income (excluding estimated catch-up premium amortization costs) of 76 cents per share, beating Zacks’ consensus estimate of 64 cents. The published figure improved from the 58-cent figure in the second quarter of 2020.

We now look forward to the results of other mortgage REITs like Arbor Realty Trust, Inc. A brand Chimera investment company CIM, which are expected to release their results on July 30 and August 4, respectively.

5 actions in the process of doubling

Each was selected by a Zacks expert as the # 1 preferred stock to earn + 100% or more in 2021. Each comes from a different industry and has unique qualities and catalysts that could fuel exceptional growth. Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.

Today, discover these 5 potential circuits >>

Click to get this free report

AGNC Investment Corp. (AGNC): Free shares analysis report

Arbor Realty Trust (ABR): Free Stock Analysis Report

Annaly Capital Management Inc (NLY): Free Stock Analysis Report

Chimera Investment Corporation (CIM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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What is book value? | Investment advice http://www.medielys.com/2021/07/29/what-is-book-value-investment-advice/ Thu, 29 Jul 2021 07:00:00 +0000 http://www.medielys.com/2021/07/29/what-is-book-value-investment-advice/ When evaluating a business, many parameters must be taken into account. And while most of them show a clear picture of the value of the organization from a sales and revenue perspective, it’s also important to consider its intrinsic value. That is, its book value. What is book value? If you take all the liabilities […]]]>

When evaluating a business, many parameters must be taken into account. And while most of them show a clear picture of the value of the organization from a sales and revenue perspective, it’s also important to consider its intrinsic value. That is, its book value.

What is book value? If you take all the liabilities of a business and subtract them from the assets and common stock of the business, you end up with the book value. Most of the time, this is an evaluative measure rather than an assessment of the market value of the business. Nonetheless, it is an important baseline metric to understand. It sets the floor of the company’s value and represents its value if the activity ceases and the company goes into liquidation tomorrow.

Here’s how to use book value and why it’s worth considering as an analytical measure when valuing a business.

What does the book value represent?

Book value is the equity of the business in the event of a liquidation. It considers the remaining value after the sale of all tangible assets to pay off all overdue debts. The formula to calculate this value is exactly as follows: active less passive. For example…

ABC Company owns $ 500 million in tangible assets, in the form of production equipment, plant, vehicles and other book assets. The company also has $ 480 million in debt in the form of loans and short-term notes. The book value of the company is $ 20 million ($ 500 million – $ 480 million = $ 20 million).

Keep in mind that the book value does not represent intangible assets, such as intellectual property. The best way to identify tangible assets and liabilities is to look at the balance sheet. A current and accurate balance sheet will paint a clear picture of the assets and liabilities of the business.

It is also important to realize that this value alone is not an accurate picture of the health of the company. It is best used as a benchmark against market value or in conjunction with other valuation metrics.

Book value versus market value

There is an important comparison to be made between the book value of a business and its market value. While book value represents intrinsic value – the amount each shareholder would get if the business were liquidated – market value represents the value of the business based on total shares outstanding (market capitalization).

There is often a significant difference between book value and market value. This is because market value encompasses investor profitability, investor sentiment, prospects for future growth and more. Where book value represents net worth, market value is a real-time measure that takes into account demand. The market value rises or falls on a daily basis, depending on what investors are willing to pay for stocks.

Book value per share

Book value per share (BVPS) divides a company’s book value by the total number of shares outstanding. This represents how much is each share worth in the event of liquidation and how much each shareholder would receive in relation to their shares. For example…

ABC Company has $ 150 million in equity on the balance sheet and 25 million shares outstanding. Its BVPS is $ 6 per share ($ 150 million / $ 25 million = $ 6 million).

BVPS is often different from the company’s current share price, as determined by the market. This is where the price to book ratio comes into play as a valuation measure.

What is the price-to-book ratio?

Many investors place book value and market value side by side in a measure called price / book ratio (P / B). To calculate this ratio, divide the current price per share by the book value per share.

If the ratio is 1 to 1, it means an equal valuation between book and market values. A ratio less than one means the book value is greater than the market value – a sign that the market has undervalued the stock. A ratio greater than one may mean that the market has overvalued the stock.

Keep in mind that this ratio does not exist in a vacuum. Most stocks have a P / B well above one because investors consider a company’s profitability and cash flow when investing in it. They are willing to pay a premium for a business that is showing signs of growth. That said, a P / B greater than 3 to 1 signals an overvalued stock.

The true value of the P / B metric is as a valuable investment tool. Firms with P / B below one and relatively healthy balance sheets could be candidates for a correction when the market values ​​them appropriately.

The inconvenients

While book value is an excellent tool for establishing measurement benchmarks, it is more of an accounting standard than an investment measure. It is only reported when companies release their quarterly financial data, which means balance sheet numbers may not be accurate a month or two after the fact. Additionally, if a company depreciates an asset, investors may not understand the impact on the book value, even with straight-line depreciation.

The book value may also vary depending on the current financial position of the business relative to its assets. For example, the book value of an asset may be $ 2 million; however, if a company files for bankruptcy, creditors can liquidate that asset for $ 1 million. Additionally, if a company has liens on its assets, the balance sheet may not reflect it accordingly, inflating the book value. Finally, some assets simply have arbitrary values ​​because of their nature – intellectual property, for example.

Like most other financial measurement measures, book value is not an absolute standard. This is often a moving target and is best used to contextualize other metrics, such as market value.

A measure for the evaluation of the company

In itself, book value is a way to determine the value of a business based on the sum of its assets. In a more interesting application, book value can tell investors a lot about a company compared to how the market values ​​it. It’s not a difficult measure to calculate, and every investor should practice recognizing book value when performing due diligence on a business. It is an illuminating step that can shed light on hidden investment opportunities. To find out more about the latest trending stocks, subscribe to the Profit trends e-letter below. The experts of Profit trends do the research for yourself so you can find new additions to your growing portfolio!




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