Five of the 40 Dax stocks are listed at a PBV discount of 50 percent or more compared to their own 20-year average.
(Photo: dpa, Imago (2), BASF, Fresenius)
Dusseldorf With around 16,000 points, the Dax is only two and a half percent below its all-time high. But this does not mean that all stocks are expensive. That shows one of the most important metrics in financial analysis, the price-to-book (P/B) ratio. It expresses how high a group is valued in terms of equity, or: how much investors pay for the share in terms of the company’s assets.
Book value is calculated as all of a company’s assets minus its liabilities. A price-to-book ratio of just under one, such as that achieved by BASF, means that all BASF shares only cost as much as the company’s equity.
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