http://www.investors.com/NewsAndAnalysis/Newsfeed/Article/120486330/201010171054/Shares-of-Clorox-Rank-the-Lowest-in-terms-of-Relative-Value-in-the-Household-Products-Industry-CLX-CL-KMB-WDFC-PG-.aspx How is this possible? And should we think about shorting it?
at first look, a P/BV of 114 seems crazy and then you look at it trading at a 15.6x P/E. they’re a marketer of goods. its not like they own apartment buildings. its makes sense why they should have a high P/BV but their P/BV of 114 iis so high that its irrelevant at this point. i can’t tell you why a company with such stable and sizeable earnings/cash flow only has SE of 83M without doing some work on it, but I think we have to write off its odd looking P/BV for now based on the fact that it doesn’t really tell us anything about whether its under/over valued. look to earnings and cash flow for any hint on valuation.
what ever happend to Miss Cleo and her infomercials?
MattLikesAnalysis Wrote: ------------------------------------------------------- > they’re a marketer of goods. its not like they own > apartment buildings. do they own their own manufacturing locations? I’ve seen this before. e.g. ZZ owns over 1 million SF of manufacturing and distriubtion space.
I can tell you why the P/B is so high… but…