In November 2014, J.P. Morgan Chase had a P/B ratio of 1.1, whereas CocaColas P/B was 5.8,

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In November 2014, J.P. Morgan Chase had a P/B ratio of 1.1, whereas Coca‐Cola’s P/B was 5.8, and the average P/B for the S&P 500 was 2.4. Differences in the level of fixed assets and capital structure across industries diminish the value of cross‐industry comparisons of price multiples.

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Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

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