whats the essence of BV?
so, .01 least and .99 yung greatest for BV? whats the reading for buy and sell signals?
(08-19-2011, 12:47 PM)CoolDad Wrote: so, .01 least and .99 yung greatest for BV? whats the reading for buy and sell signals?

mali yata digest ko ng BV (Book Value). i thought its a buy and sell indicator. its the conceived value of the stocks pala.
you mean BV for Book Value?

pasensya na, hindi kasi ako accounting grad at tulog ako sa subject na yan nung college, hindi ko alam papano sya computed, pero ang pagkaintindi ko ang book value ng isang kumpanya ay ang halaga ng kumpanya in case ito ay mabenta.

usally ang ginagamit sa fundamental analysis is P/B (price to book) or P/E (price to equity ratio). the rule of thumb is the lower the better (kasi undervalued), pero kailangan i compare dun sa with same industry.

for example sa pinas, ang banks at holdings, usually 1-2 ang P/B ratio nya. sa utulities, 4-6. sa mining, mataas PX is around 7, properties around 1 pero SMDC is around 3 and ALI around 4.

for example, assuming bank A has a P/B ratio of 2, tapos bank B has a P/B ratio of 5. shares of bank A can be considered undervalued. however, hindi realistic i compare sya kung say, si PX ay 7 at si BDO ay 2.4 at sasabihin mong undervalued si BDO kasi iba sila ng industry.

buy high, sell higher!

stock market abbreviations (for newbies)

"when it comes to trading, i'm just barely smart enough to realize that i'm a total idiot. i might be considered stupid, but on the intelligence scale, it puts me comfortably ahead of all the dumber people who thinks they're better than me."

BV = Assets - Liabilities
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