SCB Securities: Lower P/B ratio for market aheadThailand's stock market has entered a new era in terms of share valuation, with a lower price-to-book (P/B) ratio predicted, says SCB Securities (SCBS). Companies use the P/B ratio to compare a firm's market capitalisation to its book value, according to Investopedia. "The share valuation during the crisis will decline because of a drop in companies' profit, except for four businesses," said SCBS managing director Sukit Udomsirikul. The four businesses shielded from the lower P/B ratio are healthcare, retail, food and ICT, according to SCBS. SCBS upgraded the P/B ratio for four businesses, covering healthcare (5.7 times from 4 times at current valuation), commerce (5.4 times from 4.1 times), ICT (3.2 times from 2.3 times) and food (2.2 times from 2.0).

Source: Bangkok Post July 14, 2020 00:00 UTC