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PBR indicates how many times the net assets per share.
It is used to see whether the stock price is high or low for the company's asset value.
What is PBR?
PBR is referred to as "the share price magnification".
It is an indicator to see how much stock price is evaluated for the company's net assets.
PBR = Stock Price ÷ BPS
BPS is a net asset per share.
If stock price is 1,000 yen, BPS is 800 yen, PBR is 1. 25 times
Meaning of 1x
PBR1 is the same as net assets per share.
In general, the stock price is lower than the asset value when the PBR is lower than one.
However, even if PBR is broken, the market may be affected if the future profitability is low.
| State | 見方 |
|---|---|
| PBR | Expecting profitability and growth over net assets |
| PBR1 | Anx with allocation or profitability |
Notes
PBR is an indicator based on asset bookkeeping value.
We may not be able to reflect unob。sive value such as brand power, human resources, and technology.
In addition, companies whose deficits continue to lose their net assets, making it difficult to see PBR.
PBR is a basic indicator of the relationship between stock price and net assets.
Beginners can check not only PBR but also ROE, profit growth and financial soundness.