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Fifth Street Finance Corporation (NAS:FSC)
P/B Ratio
0.77 (As of Today)

As of today, Fifth Street Finance Corporation's share price is $8.16. Fifth Street Finance Corporation's Book Value per Share for the fiscal year that ended in Sep. 2014 was $10.62. Hence, Fifth Street Finance Corporation's P/B Ratio of today is 0.77.

Good Sign:

Fifth Street Finance Corporation stock P/B Ratio (=0.76) is close to 5-year low of 0.75

FSC' s 10-Year P/B Ratio Range
Min: 0.43   Max: 1.34
Current: 0.76

0.43
1.34

During the past 7 years, Fifth Street Finance Corporation's highest P/B Ratio was 1.34. The lowest was 0.43. And the median was 1.01.

FSC's P/B Ratiois ranked higher than
91% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 1.87 vs. FSC: 0.76 )

During the past 12 months, Fifth Street Finance Corporation's average Book Value Per Share Growth Rate was 7.80% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 1.80% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 0.10% per year.

During the past 7 years, the highest 3-Year average Book Value Per Share Growth Rate of Fifth Street Finance Corporation was 1.80% per year. The lowest was -8.20% per year. And the median was -2.25% per year.


Definition

Fifth Street Finance Corporation's P/B ratio for today is calculated as follows:

P/B Ratio=Share Price/Book Value per Share (A: Sep. 2014)
=8.16/10.62
=0.77

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book Ratio. The difference between Price-to-Tangible-Book Ratio and Price-to-Book Ratio is that book value other than intangibles are used in the calculation.


Explanation

Unlike valuation ratios relative to the earning power such as P/E ratio, P/S ratio or Price-to-Free-Cash-Flow ratio, the Price-to-Book Ratio measures the valuation of the stock relative to the underlying asset of the company.

The Price-to-Book Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The Price-to-Book Ratio does not work well for these companies. Some companies even have negative equity, so the Price-to-Book Ratio cannot be applied to them.


Related Terms

Book Value per Share, Market Cap, Total Equity, Preferred Stock, P/E ratio, P/S ratio, Price-to-Free-Cash-Flow ratio, Price-to-Tangible-Book Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Fifth Street Finance Corporation Annual Data

Sep08Sep09Sep10Sep11Sep12Sep13Sep14
pb 0.000.000.000.771.011.070.931.091.040.87

Fifth Street Finance Corporation Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
pb 1.011.091.051.111.061.040.940.961.010.87
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