Q: How Many Stocks Trade for Below Book Value? A: 12%March 11, 2015
Surprising as it may seem, only 12% of stocks in the MSCI World Index trade for less than 1x book value. This is compared to more than 30% in 2012 and nearly 50% in 2009. How the times have changed!
In the second chart below we show the percent of companies in the MSCI World trading for under 5x cash flow. The current reading of 6% compares to nearly 50% in 2009.