No. of Recommendations: 21
I think Jim has addressed this, and if I remember correctly, 1.4 is a B/V that is a decent time to buy, regardless of the intrinsic value or any other high-falutin' notions.
The 20 year average price-to-peak-book has been 1.396
So 1.4 is basically average, in these modern times. If you're buying at that level you're not obviously overpaying relative to a random day.
But bear in mid that fully 1/3 of the time price-to-peak-known-book has been below 1.343. That's a drop of another 18.1% from today's $493.54.
Certainly not a prediction, but absolutely something one should be aware is possible.
Not much of a drop yet. At today's multiple, price-to-peak book has been higher only 5.8% of the time since in the last 20 years.
Jim
