3 Beaten-Down Stocks That Are Trading Below Their Book Values
A company's book value is equal to its total assets, less its liabilities. Book value does not consider the future at all. It is strictly a measure of the company's balance sheet values at any given time. For investors, deals can be had when an otherwise solid company has stock trading below its book value per share (BVPS).When a stock is trading below its BVPS (book value divided by the number of shares outstanding), that's usually a big sign that there's something worrisome about the business, which results in investors demanding a steep discount for it. Depending on the company, this can be an indication of value or an indication of a value trap.Three stocks that are struggling badly this year are Viatris (NASDAQ: VTRS), JetBlue Airways (NASDAQ: JBLU), and Plug Power (NASDAQ: PLUG). You can buy any of them for well below their BVPS. The big question is whether these stocks are worth the risk.Continue reading
A company's book value is equal to its total assets, less its liabilities. Book value does not consider the future at all. It is strictly a measure of the company's balance sheet values at any given time. For investors, deals can be had when an otherwise solid company has stock trading below its book value per share (BVPS).
When a stock is trading below its BVPS (book value divided by the number of shares outstanding), that's usually a big sign that there's something worrisome about the business, which results in investors demanding a steep discount for it. Depending on the company, this can be an indication of value or an indication of a value trap.
Three stocks that are struggling badly this year are Viatris (NASDAQ: VTRS), JetBlue Airways (NASDAQ: JBLU), and Plug Power (NASDAQ: PLUG). You can buy any of them for well below their BVPS. The big question is whether these stocks are worth the risk.
