If Citigroup trades at 20% of its book value, JP Morgan trades at 84% of its book value, and Wells Fargo trades at 185% of its book value. Does this mean that Wells Fargo is overvalued relative to Citigroup? Is any company that trades at less than its book value undervalued?

Answer rating: 100% (QA)

The fact that Wells Fargo trades at a higher multiple of its book value compared to Citigroup does n... View the full answer