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GuruFocus has detected 4 Warning Signs with China Information Technology Inc $CNIT.
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China Information Technology Inc (NAS:CNIT)
PB Ratio
10.87 (As of Today)

As of today, China Information Technology Inc's share price is $1.00. China Information Technology Inc's Book Value per Share for the fiscal year that ended in Dec. 2016 was $0.09. Hence, China Information Technology Inc's P/B Ratio of today is 10.87.

Warning Sign:

China Information Technology Inc stock PB Ratio (=10.65) is close to 5-year high of 10.65

CNIT' s PB Ratio Range Over the Past 10 Years
Min: 0.11   Max: 131.15
Current: 9.85

0.11
131.15

During the past 12 years, China Information Technology Inc's highest P/B Ratio was 131.15. The lowest was 0.11. And the median was 1.39.

CNIT's PB Ratio is ranked higher than
66% of the 1789 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.97 vs. CNIT: 9.85 )

During the past 12 months, China Information Technology Inc's average Book Value Per Share Growth Rate was -82.50% per year. During the past 3 years, the average Book Value Per Share Growth Rate was -58.30% per year. During the past 5 years, the average Book Value Per Share Growth Rate was -57.90% per year. During the past 10 years, the average Book Value Per Share Growth Rate was -15.70% per year.

During the past 12 years, the highest 3-Year average Book Value Per Share Growth Rate of China Information Technology Inc was 521.40% per year. The lowest was -58.50% per year. And the median was -4.80% per year.


Definition

China Information Technology Inc's P/B ratio for today is calculated as follows:

P/B Ratio=Share Price/Book Value per Share (A: Dec. 2016)
=1.00/0.092
=10.87

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

China Information Technology Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
pb 4.611.582.021.310.150.175.686.453.197.83

China Information Technology Inc Quarterly Data

Sep12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16Dec16
pb 0.170.170.705.682.946.455.713.193.367.83
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