New Ratio to Asses Stock Value (PBXPE)

NANDANA2012 · 1 New Ratio to Asses Stock Value (PBXPE) Sat Jan 25, 2020 5:05 pm

NANDANA2012

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Have anyone tried this New ratio:
It gives really good idea about a value of a stock

How to calculate

1. Calculate Price to Book Ratio
2. Calculate Price to Book (Net Asset) Ratio
3. Then Multiply These 2

This ratio combines a value of stock using both Earnings and Net Assets.

Thus its a better tool than just looking at one ratio.

So, values are lower means share is better.

Some popular shares
RCL =2.1
Tile = 5.7
AEL = 9.0
COMB=4.2
SAMP=4.3

I just invented this. But definitely this may be used by analysts with other names...

Teller · 2 Re: New Ratio to Asses Stock Value (PBXPE) Sat Jan 25, 2020 8:15 pm

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Tile and AEL strictly avoid by investors .

NANDANA2012 · 3 Re: New Ratio to Asses Stock Value (PBXPE) Sat Jan 25, 2020 8:30 pm

NANDANA2012

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Teller wrote:Tile and AEL strictly avoid by investors .

May we know why ???

Teller · 4 Re: New Ratio to Asses Stock Value (PBXPE) Sat Jan 25, 2020 11:25 pm

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Study their financial ratios carefully . Im not happy with them at all. Financial analysis gives us a major opinion when taking decisions. Technicals analysis there after..

KavinduTM · 5 Re: New Ratio to Asses Stock Value (PBXPE) Sat Jan 25, 2020 11:50 pm

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There are two main types of financial analysis :- fundamental analysis and technical analysis.

Fundamental analysis uses ratios and financial statement data to determine the intrinsic value of a security. ( Such as EPS , NAV )

Technical analysis assumes a security's value is already determined by its price, and it focuses instead on trends in value over time.

Isn't it?
Correct me if i'm wrong.

KavinduTM · 6 Re: New Ratio to Asses Stock Value (PBXPE) Sun Jan 26, 2020 12:00 am

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NANDANA2012 wrote:Have anyone tried this New ratio:
It gives really good idea about a value of a stock

How to calculate

1. Calculate Price to Book Ratio
2. Calculate Price to Book (Net Asset) Ratio
3. Then Multiply These 2

This ratio combines a value of stock using both Earnings and Net Assets.

Thus its a better tool than just looking at one ratio.

So, values are lower means share is better.

Some popular shares
RCL =2.1
Tile = 5.7
AEL = 9.0
COMB=4.2
SAMP=4.3

I just invented this. But definitely this may be used by analysts with other names...

Haha nice. cheers

Please calculate RCL value as an example.

NANDANA2012 · 7 Re: New Ratio to Asses Stock Value (PBXPE) Sun Jan 26, 2020 7:47 am

NANDANA2012

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	RCL	SAMP	COMB	AEL	TILE
Market Price	87.00	165.00	93.00	19.80	76.00
EPS	16.66	24.00	17.00	2.00	7.16
NAV	211.00	263.00	120.00	21.73	141.00

Pricce to Book	0.41	0.63	0.78	0.91	0.54
Price to EPS	5.22	6.88	5.47	9.90	10.61
PBXPE	2.15	4.31	4.24	9.02	5.72

NANDANA2012 · 8 Re: New Ratio to Asses Stock Value (PBXPE) Sun Jan 26, 2020 7:54 am

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So RCL is the King in CSE ? Any Other share close ?

NANDANA2012 · 9 Re: New Ratio to Asses Stock Value (PBXPE) Sun Jan 26, 2020 8:09 am

NANDANA2012

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Teller wrote:Tile and AEL strictly avoid by investors .

Yes TILE not cheap like RCL and also AEL bit overvalued, But AEL has a future growth momentum, where they will get many Big contracts from the GOVT, Income tax reduced..etc Like TJL (Highly overvalued but with good future growth momentum) - These share are shares having ATTENTION SYNDROME..

NANDANA2012 · 10 Re: New Ratio to Asses Stock Value (PBXPE) Sun Jan 26, 2020 8:46 am

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Few More ....Table Format

	Market Price	EPS	NAV	Pricce to Book	Price to EPS	PBXPE	Notes
RCL	87.00	16.66	211.00	0.41	5.22	2.15	Actual EPS is higher
OSEA	15.80	2.99	33.82	0.47	5.29	2.47
COMB	93.00	17.00	120.00	0.78	5.47	4.24
SAMP	165.00	24.00	263.00	0.63	6.88	4.31
LFIN	162.00	36.00	157.00	1.03	4.50	4.64
TILE	76.00	7.16	141.00	0.54	10.61	5.72
LOFC	3.90	0.36	5.44	0.72	10.83	7.77
AEL	19.80	2.00	21.73	0.91	9.90	9.02
TJL	40.00	3.52	21.17	1.89	11.36	21.47

KavinduTM · 11 Re: New Ratio to Asses Stock Value (PBXPE) Wed Feb 05, 2020 8:55 pm

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Hey @Nandana. Can u check that ratio for PABC please.

KavinduTM · 12 Re: New Ratio to Asses Stock Value (PBXPE) Thu Feb 06, 2020 9:05 am

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NANDANA2012 wrote:Few More ....Table Format

Market Price EPS NAV Pricce to Book Price to EPS PBXPE Notes
RCL 87.00 16.66 211.00 0.41 5.22 2.15 Actual EPS is higher
OSEA 15.80 2.99 33.82 0.47 5.29 2.47
COMB 93.00 17.00 120.00 0.78 5.47 4.24
SAMP 165.00 24.00 263.00 0.63 6.88 4.31
LFIN 162.00 36.00 157.00 1.03 4.50 4.64
TILE 76.00 7.16 141.00 0.54 10.61 5.72
LOFC 3.90 0.36 5.44 0.72 10.83 7.77
AEL 19.80 2.00 21.73 0.91 9.90 9.02
TJL 40.00 3.52 21.17 1.89 11.36 21.47

Are these calculations are correct? Did u take Nav as the book value?

KavinduTM · 13 Re: New Ratio to Asses Stock Value (PBXPE) Thu Feb 06, 2020 9:09 am

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Is it Price to Earnings x Price to Book or Price to Earnings x Price to Nav?

RCL - PE = 5.73 , PB = 1.12 > So PB x PE will be 6.41

ThilinaM · 14 Re: New Ratio to Asses Stock Value (PBXPE) Fri Feb 07, 2020 7:59 am

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Haha this is not new this formula is a basic one comes in inteligent investor of ben graham.
this formula alone will not work there are millions of exeptions.

when its come to book knoledge im the expert here. using this formula
u will get low asst yield companys( weak mgt or useless large cap) also high earning risky companys(only may be one time earning).

Dont calculate ratios those are useless . get a basic idea of a company and find why it shoud win.
u should be able to calculate the reason why its profits will go up in future.

ThilinaM · 15 Re: New Ratio to Asses Stock Value (PBXPE) Fri Feb 07, 2020 8:03 am

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in this formula NAV given a big place. if NAV too big than price warren B was interested. but later stages of his life he explained buy NAV high campanys some times like collecting cigar buds. u have only one puff. there are many to lurn dont use montisoory level formulas blindly . u will fail. most important factor in a company is quality of management.

ThilinaM · 16 Re: New Ratio to Asses Stock Value (PBXPE) Fri Feb 07, 2020 8:05 am

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NAV do not matter if good PE when company is rock stable (be there in another 100 years).

Teller · 17 Re: New Ratio to Asses Stock Value (PBXPE) Sat Feb 08, 2020 1:33 am

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In ASia , NAVPS and EPS to be considered if 35 plus ratios are ok. Imagine BALA Navps is above 130 now trades below 13 LKR, think Renuka Holding EPS , but the share price???? Thats why im telling you not to touch 90% of CSE companies.

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New Ratio to Asses Stock Value (PBXPE)

1 New Ratio to Asses Stock Value (PBXPE) Sat Jan 25, 2020 5:05 pm

NANDANA2012

2 Re: New Ratio to Asses Stock Value (PBXPE) Sat Jan 25, 2020 8:15 pm

Teller

3 Re: New Ratio to Asses Stock Value (PBXPE) Sat Jan 25, 2020 8:30 pm

NANDANA2012

4 Re: New Ratio to Asses Stock Value (PBXPE) Sat Jan 25, 2020 11:25 pm

Teller

5 Re: New Ratio to Asses Stock Value (PBXPE) Sat Jan 25, 2020 11:50 pm

KavinduTM

6 Re: New Ratio to Asses Stock Value (PBXPE) Sun Jan 26, 2020 12:00 am

KavinduTM

7 Re: New Ratio to Asses Stock Value (PBXPE) Sun Jan 26, 2020 7:47 am

NANDANA2012

8 Re: New Ratio to Asses Stock Value (PBXPE) Sun Jan 26, 2020 7:54 am

NANDANA2012

9 Re: New Ratio to Asses Stock Value (PBXPE) Sun Jan 26, 2020 8:09 am

NANDANA2012

10 Re: New Ratio to Asses Stock Value (PBXPE) Sun Jan 26, 2020 8:46 am

NANDANA2012

11 Re: New Ratio to Asses Stock Value (PBXPE) Wed Feb 05, 2020 8:55 pm

KavinduTM

12 Re: New Ratio to Asses Stock Value (PBXPE) Thu Feb 06, 2020 9:05 am

KavinduTM

13 Re: New Ratio to Asses Stock Value (PBXPE) Thu Feb 06, 2020 9:09 am

KavinduTM

14 Re: New Ratio to Asses Stock Value (PBXPE) Fri Feb 07, 2020 7:59 am

ThilinaM

15 Re: New Ratio to Asses Stock Value (PBXPE) Fri Feb 07, 2020 8:03 am

ThilinaM

16 Re: New Ratio to Asses Stock Value (PBXPE) Fri Feb 07, 2020 8:05 am

ThilinaM

17 Re: New Ratio to Asses Stock Value (PBXPE) Sat Feb 08, 2020 1:33 am

Teller