Stingy Investor Contact - Subscribe - Login
  Home | Articles | Screens | Links | SNW | Rothery Report
Tip Sheet
Tip Sheet Archive


High Dividend Yield
  High Yield DJIA30
  High Yield TSX60

Dividends at Risk
  Dividend Risk DJIA30
  Dividend Risk TSX60

Value Ratio Approach
  Value Ratio DJIA30
  Value Ratio TSX60

Graham's Approach
  Graham DJIA30
  Graham TSX60

Other Screens
  Low P/E DJIA
  Low P/E TSX60
  Low P/B DJIA
  Low P/B TSX60
  Low P/S DJIA

Stingy Investor Tip Sheet

Banks with book value

As U.S. banks collapse one after another, let's take a quick look at the situation north of the border. Sure, some Canadian banks suffered setbacks this year but life is pretty good in Canada.

The roughed up include CIBC which was recently nominated as the bank most likely to walk into a pointy stick. But both BMO and National Bank have been under pressure.

An important, if imperfect, indicator of value for banks is book value. All else being equal, banks with lower price-to-book-value ratios (P/B) are more attractive.

Just keep in mind that big banks have been known to fall below book value during stressful times. On the other hand, many could move sharply higher should the good times return.

Company			Price    P/B    P/E   Yield
======================  ======  =====  =====  =====
Bank of Montreal (BMO)	$47.41   1.30   13.0   5.9%
TD Bank (TD)		$60.41   1.56   11.7   4.0%
CIBC (CM)		$60.12   1.74  -12.7   5.8%
Scotiabank (BNS)	$45.83   2.12   12.3   4.3%
Royal Bank (RY)		$46.50   2.31   12.4   4.3%
Source &, September 16, 2008

login to see the full table

09/16/2008   11:59 PM EST   Permlink   save & shareBook Value

About Us | Legal | Contact Us
Disclaimers: Consult with a qualified investment adviser before trading. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, financial advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. More...