An Arithmetic mystery - need help

[kakaballi]

Re: An Arithmetic mystery - need help

@Southie

Book value may be subject to more financial engineering.
.Esp for financial firms. But it p to e is still useful metric. Esp within same industry.

100 yrs ago p to b of 1 was good. Now u can’t find that. It is more p to b 2.

This discussion is not suitable for this forum but a couple of things:

1. Book value is much more stable (less volatile) than earnings.

2. Buy backs impact both numerator and denominator of pe ratio, (ideally) keeping it constant.

Rest can be discussed in your favorite forum.