Session 17: Book Value Multiples

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Look at the variables that cause book value multiples (price to book and EV to Investment Capital) to vary across companies and time.
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What a geniuess piece of information. Its priceless.

swp
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Is it correct to say that to use a linear regression approach (10:47) to identify over/under-valued stocks, one is making an assumption that the market is on average more efficient than not?

oscaryeung
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Unfortunately, Nokia returned -46% in the last 10y.

mare
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I thought you said that standard deviation of returns was a poor measure of risk? Why is it used in the bank example?

elontusk
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Sir, how can you compare standard deviation as measure of risk for different companies whose size is different? Aren't we supposed to use Coefficient of Variation (SD/Mean) instead of comparing Standard Deviations directly?

OntarioLakeToronto
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the best ever series! thanks so mcuh aswath!

flamingjob
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It is so difficult to follow his train of thoughts.

weiyuchen