Book Value?! G = (1 – Payout ratio) * ROE
ROE = Net Income/Revenue Multi-Year Average
The difference between assets and liabilities with due depreciation as postulated within the company’s books. This value is instituted in an ostensibly ubiquitous quantitative ratio essential to subsequent valuation; (i.e. price to book, or p/b). We may ascertain this ratio by the quotient of ROE-G(return on equity minus growth) and COE-G(cost of equity minus growth). Price to book or p/b is then multiplied by the security’s trading price to determine book value per share, or bv/s.
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