REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
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PBV
(Price-to-book value)
The calculation
of PBV is as follows:
LATEST SHARE
PRICE
--------------------------
= PBV (x)
BOOK VALUE
PER SHARE
Book value
per share is calculated using information disclosed in the latest
available annual report. The book value figure is divided by
the number of ordinary shares in issue at the year-end. The
calculation of book value per share is as follows:
BOOK VALUE
(£)
---------------------------------
X 100p = BOOK VALUE PER SHARE (p)
SHARES IN
ISSUE AT YEAR-END
Book value
is calculated as follows:
ORDINARY
CAPITAL
+ EQUITY
RESERVES
= BOOK VALUE
(£)
The book
value per share is adjusted retrospectively when a share
capital change gives rise to a share price adjustment factor.
In some cases notional
dilution must be taken into account.
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