Is the question getting at the difference between market value and book value? As in P/E is a way to get at a price based on net income versus P/B gets at a price based on book value of the firm (two very different metrics).
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How much the market cap should be for company X based on the P/E or P/B ratios for the industry average.
Is the question getting at the difference between market value and book value? As in P/E is a way to get at a price based on net income versus P/B gets at a price based on book value of the firm (two very different metrics).
It seems like the implied market cap from P/E is much higher than P/B. Is there any reason for it?
How would you explain the implied market cap difference between the two if someone asks?
I'm trying to value a bank using P/E and P/B.
Ut rerum magni cupiditate alias recusandae rerum id. Perferendis harum beatae voluptate exercitationem praesentium. Omnis aut perspiciatis eos id sunt neque repellendus soluta.
Possimus voluptas nobis esse ab omnis vero vel. Suscipit est soluta quae quae earum sequi rerum. Rerum architecto dolorum id provident rerum omnis accusamus. Sit maiores neque ut aut rerum porro. Fugit repellat eaque placeat maxime natus.
Et accusantium impedit hic dolorem ab amet qui. Reiciendis aspernatur vel in aut autem iusto est. Rem labore eum fuga dicta. Ut at officia dolorem omnis optio sequi incidunt.
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