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MV/BV ratio. The higher the better or vice a versa ?

Hi all, 

I got confused why the MV/BV ratio with the lower quotient is deemed to have a better value. Below is the excerpt from Reading 33 (CFA Institute book). 

Marseglia computes the MV/BV for the companies as follows:

SCHW $21,871/$5,073 = 4.3

AMTD $11,525/$3,551 = 3.2

As expected, each company appears to be selling at a premium to the industry average MV/BV of 1.2The companies have similar MV/BVs (i.e., they are somewhat equally valued relative to the book value of shareholders’ equity), but based solely on MV/BV, AMTD appears to be a better value. Marseglia is concerned, however, because he notes that AMTD has significant amounts of goodwill and acquired intangible assets.

Could someone explain me why SCHW does not have a better value? 

Thanks

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Why would you rather pay $4.30 for each dollar of equity, rather than paying only $3.20 for each dollar of equity?

Put another way, if you invest $1.00, why would you rather get only $0.23 in equity instead of getting $0.31 in equity?

Simplify the complicated side; don't complify the simplicated side.

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http://financialexamhelp123.com/

Right, makes sense. Thanks!

You’re welcome.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/