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Price-to-book versus Premium/ discount

MDW1954
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Price-to-book versus Premium/ discount

#444051

Postby MDW1954 » September 21st, 2021, 10:04 am

I've had my attention drawn to the price-to-book chart in the web page below from Hargreaves Lansdown.

https://www.hl.co.uk/news/articles/investing-in-property-shares-how-the-pandemics-divided-the-sector

I've been asked: what is the difference between price-to-book, and the usual premium and discount percentages that we all use?

My answer (although my relatively modest formal accountancy training was almost 50 years ago): essentially nil.

Certainly, I contend that the bars in the chart would be in the same order.

And I also contend that the calculation is essentially the same, too.

Am I right?

MDW1954

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