Indian shares went through a rollercoaster ride in the last few trading sessions. Today, the market is up over 1% regaining the lost ground on Monday. Equity benchmarks saw a drop of over 0.8% on Friday (March 11, 2011) after a massive earthquake hit Japan. The Nikkei 225 average closed down 1.7% at 10,254.43 points.
The question on everybody's mind right now is: Is it time to buy OR wait and watch should be the way to go?
There are different fundamental and technical ways to look the stocks. Datawatch looks at various stocks trading at discount to their respective book value.
Price to book value (PBV) ratio is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.
Book Value is the net asset value of a company, calculated by total assets less intangible assets (patents, goodwill) and liabilities.
A stock can be deemed as undervalued if its current market price is below its book value. Therefore, potential for the stock to move up is promising.
