Calculating P/B ratio, what am I doing wrong?

[beau]

Hi everyone,

I was calculating the P/B ratio for Keppel Corp for the previous full year ending 2013 which amounted to ~7.74. Then, on the key statistics section, I see the P/B ratio to be ~1.5. I was using the financial statements from yahoo finance.

What am I doing wrong that gives rise to this discrepancy?

Apologies if this is a stupid question.

[sgpunter]

Keppel Corp's NAV for FY13 is stated to be $5.37.

Based on the price of $8.22 now, the P/B ratio is 8.22/5.37 = 1.53

[CityFarmer]

Hi everyone,

I was calculating the P/B ratio for Keppel Corp for the previous full year ending 2013 which amounted to ~7.74. Then, on the key statistics section, I see the P/B ratio to be ~1.5. I was using the financial statements from yahoo finance.

What am I doing wrong that gives rise to this discrepancy?

Apologies if this is a stupid question.

The P/B is approx 1.5, base on my calculation. It is very likely a mistake to get ~7.7.

Net Asset was $9,701 mil for FY2013, and market cap now is $14,937 mil, thus ~1.5

[Nick]

Hi everyone,

I was calculating the P/B ratio for Keppel Corp for the previous full year ending 2013 which amounted to ~7.74. Then, on the key statistics section, I see the P/B ratio to be ~1.5. I was using the financial statements from yahoo finance.

What am I doing wrong that gives rise to this discrepancy?

Apologies if this is a stupid question.

Show us your calculations then we can see where it went wrong.

[beau]

Hi everyone,

I was calculating the P/B ratio for Keppel Corp for the previous full year ending 2013 which amounted to ~7.74. Then, on the key statistics section, I see the P/B ratio to be ~1.5. I was using the financial statements from yahoo finance.

What am I doing wrong that gives rise to this discrepancy?

Apologies if this is a stupid question.

Show us your calculations then we can see where it went wrong.

Total Assets 30,056,000,000
Total Intangible Assets -
Total Liabilities 16,367,000,000
Shares outstanding 1,820,000,000

So (Total Assets - Total Liabilities) / Shares outstanding = ~7.77



.....right?

All my stats are from yahoo finance. https://sg.finance.yahoo.com/q/bs?s=BN4.SI&annual

Edit: Oh wait I got 8.23/7.77 = 1.059 instead. I forgot to divide the price by book value lol. But still, 1.059 is off?

[beau]

Hi everyone,

I was calculating the P/B ratio for Keppel Corp for the previous full year ending 2013 which amounted to ~7.74. Then, on the key statistics section, I see the P/B ratio to be ~1.5. I was using the financial statements from yahoo finance.

What am I doing wrong that gives rise to this discrepancy?

Apologies if this is a stupid question.

The P/B is approx 1.5, base on my calculation. It is very likely a mistake to get ~7.7.

Net Asset was $9,701 mil for FY2013, and market cap now is $14,937 mil, thus ~1.5

How did you get $9,701 mil?

[Nick]

Hi everyone,

I was calculating the P/B ratio for Keppel Corp for the previous full year ending 2013 which amounted to ~7.74. Then, on the key statistics section, I see the P/B ratio to be ~1.5. I was using the financial statements from yahoo finance.

What am I doing wrong that gives rise to this discrepancy?

Apologies if this is a stupid question.

Show us your calculations then we can see where it went wrong.

Total Assets 30,056,000,000
Total Intangible Assets -
Total Liabilities 16,367,000,000
Shares outstanding 1,820,000,000

So (Total Assets - Total Liabilities) / Shares outstanding = ~7.77



.....right?

All my stats are from yahoo finance. https://sg.finance.yahoo.com/q/bs?s=BN4.SI&annual

Edit: Oh wait I got 8.23/7.77 = 1.059 instead. I forgot to divide the price by book value lol. But still, 1.059 is off?

The formula is fine. Just note that the figures isn't entirely accurate as (Total Assets - Total Liabilities) = Total Equity = Shareholders' Equity + Minority Interests.

The P/B is only looking at Shareholders' Equity so it is necessary to deduct the Minority Interests.

It is best to look at Keppel Corp quarterly or annual reports to get the NAV figure or to obtain data from the balance sheet since everything is spelt out clearly.

[beau]

Hi everyone,

I was calculating the P/B ratio for Keppel Corp for the previous full year ending 2013 which amounted to ~7.74. Then, on the key statistics section, I see the P/B ratio to be ~1.5. I was using the financial statements from yahoo finance.

What am I doing wrong that gives rise to this discrepancy?

Apologies if this is a stupid question.

Show us your calculations then we can see where it went wrong.

Total Assets 30,056,000,000
Total Intangible Assets -
Total Liabilities 16,367,000,000
Shares outstanding 1,820,000,000

So (Total Assets - Total Liabilities) / Shares outstanding = ~7.77



.....right?

All my stats are from yahoo finance. https://sg.finance.yahoo.com/q/bs?s=BN4.SI&annual

Edit: Oh wait I got 8.23/7.77 = 1.059 instead. I forgot to divide the price by book value lol. But still, 1.059 is off?

The formula is fine. Just note that the figures isn't entirely accurate as (Total Assets - Total Liabilities) = Total Equity = Shareholders' Equity + Minority Interests.

The P/B is only looking at Shareholders' Equity so it is necessary to deduct the Minority Interests.

It is best to look at Keppel Corp quarterly or annual reports to get the NAV figure or to obtain data from the balance sheet since everything is spelt out clearly.

Thank you Nick for the clarification.

Does this mean that I should take financial statements from external sources (yahoo finance, bloomberg, etc) with a pinch of salt? Because on yahoo finance, the Minority Interests line is simply a '-'.

[dzwm87]

It is still a human punching the numbers behind yahoo finance - same for bloomberg. So there is a tendency to make human errors.

Going back to the source (i.e. annual report, quarterly financials) eliminates this error possibility.

[CityFarmer]

Hi everyone,

I was calculating the P/B ratio for Keppel Corp for the previous full year ending 2013 which amounted to ~7.74. Then, on the key statistics section, I see the P/B ratio to be ~1.5. I was using the financial statements from yahoo finance.

What am I doing wrong that gives rise to this discrepancy?

Apologies if this is a stupid question.

The P/B is approx 1.5, base on my calculation. It is very likely a mistake to get ~7.7.

Net Asset was $9,701 mil for FY2013, and market cap now is $14,937 mil, thus ~1.5

How did you get $9,701 mil?

The attributable net asset value (ex minority interest), base on my paid source.