Stocks quoting below book value
Domestic equity benchmarks are currently hovering at record high levels, but as many as 48 stocks from the BSE500 basket are trading below their book values, making it look like a sale season on Dalal Street. But don’t jump the gun; you may be treading a minefield. Book value of a company is the worth of its assets carried on balance sheet. Best Stocks Under $1.00 for 2020 The stock market has had an incredible bull-run since the Great Recession of 2008 and 2009. Stocks continue to hit new all-time highs and the price-to-earnings ratios of most S&P 500 companies look very expensive. Of 3,167 actively traded stocks on the BSE exchange, 908 were quoting below their face value as on Monday. These 908 companies have seen an average value erosion of 55 per cent in their market values. Their combined market capitalisation slipped to Rs 16,508 crore from Rs 36,350 crore at the beginning of the current calendar year.