No. of Recommendations: 13
Prices below 1.25 price to book value have occurred at least four times in the last ten years. 2016, 2018, 2020 and 2022. Haven’t seen it since then. Maybe we’re due.
I don't think we will see P/B < 1.25 unless there is an overall recession/ broader stock market decline. It was lower in the 2010s because buybacks were mostly off the table back then. Now a regular buyback below intrinsic value is pretty much the base case, and thus P/B should be higher going forward. So 2016, 2018, and 2020 were pre-large buyback years. And 2022 was a significant down year for stock market.
The above is just my guess.
