The problem is that Mr Prot was referring to the book value of equity at BNP Paribas.
Then there is the price-to-book ratio, which measures a company's stockmarket value against the book value of its assets.
This trick can be employed only when the current fair value of the asset falls below the book value of the asset.
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In 2008-09 already troubled U.S. banks were being battered by a recently reenacted, arcane accounting rule that was gratuitously destroying the book value of bank capital.
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But the Financial Times reported that financial stocks are trading above the book value (assets, including cash, minus liabilities) of the companies for the first time since July.
And the rise in the book value of their equity holdings adds to the proportion of risky assets held by life companies, adding also to the mismatch of duration.
But the oil-service firms will get only the book value of their assets, paid in government bonds and with deductions for any labour or environmental liabilities the government adduces.
Finally, the acquisition binge has left Danaher with a mountain of goodwill on its balance sheet--goodwill being the excess of the purchase price over the book value of the acquired business.
Whenever a company trading at a premium to book value issues new shares, whether from a secondary offering or in the course of an acquisition, the book value per share goes up.
Depending on what assumptions you make about how much of the deferred purchase price will ever be paid, Virgin is probably paying a discount of around 20% to the book value of the Rock.
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Yet regulators and lawsuit-fearful auditors pressed banks and other financial firms to relentlessly knock down the book value of this subprime paper, even in cases where these obligations were being serviced in the payment of principal and interest.
The average book value of the life firms' shares is now equivalent to 14, 900 on the Nikkei 225 stockmarket average, compared with the Nikkei's actual level of around 20, 600.
But 407p isn't likely to be seen by the National Audit Office, the watchdog that is supposed to prevent the government wasting taxpayers' money, as the true book value of the government's stake.
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One example of a company that actually did make large repurchases of shares substantially below book value in 2011 is American Capital ( NASDAQ: ACAS), which announced it bought back millions of shares of its own stock, at prices considerably below its most recent reported book value per share, thereby elevating the per-share book value of the remaining shares.
Presently, the premium over book value for the market is 1.5 times, a reasonable valuation, but in 1982 stocks sold down to book value.
In these cases, the utility book value of nuclear or technologically obsolete plants and equipment exceeds market value.
However, by combining the credits with book value depreciation of the property meant that corporations could receive the double-dip Congress had explicitly argued against individual receiving: with the passive loss provision still in place for corporations, the opportunity existed to take the tax liability and turn it into an investment for corporations.
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All this is reflected in the premium over book value before adjusting for goodwill on the balance sheet.
We will assume that the bank trades at a modest premium to book value on the stock market, of 1.5x book.
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Change them in yet another way and book value, the asset value, of many stocks could double or even treble.
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Buffett set a specific price-to-book-value target for the buybacks, saying Berkshire ( NYSE: BRK-B) would buy back its own shares but only at prices up to a 10% premium over the then-current book value of Berkshire shares.
When looking at Price to Tangible Book Value multiples, you have to ask yourself, what are the risks that Tangible Book Value per Share is overstated.
Not 2.5 times its book value like the U.S. equity market, but its book value.
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Bloomberg points out that the stock is now trading below book value for the first time in nine years.
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Last fall Berkshire announced that if the per-share book value fell below 110% of the stock price (1.1x the stock price) the company would step in and repurchase shares.
Rice's Healthcare Blue Book basically offers blue book prices for medical procedures -- like the " Kelly Blue Book" value for a car that you go into the dealership with to negotiate.
Somebody must have raised some money at some time in the past, as the 7 million in net book value of property on the assets side is matched mainly by net worth and an unsecured note of 1.5 million.
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The Price to Book ratio is a formula that represents the most recent share price of a company compared to its book value per share (the residual dollar value for common shareholders after assets are liquidated and all debtors are paid).
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Famed academics Gene Fama and Ken French enjoy the stability of book value and this leads them to high book-to-market companies (high BtM).
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