PBVPE ratio of all stocks within Banking Sub-Index as on 22 August 2019!!

22 August 2019,
Kathmandu, Nepal.

As we all know about Warren Buffet, he has developed a cocktail of analysing company by multiplying Price/Book Value * Price/Earning. And, as per his recommendation this figure should be less than 22.5, i.e. <15 for Price/Earning ratio and <1.5 for Price/Book Value.

Below is the figures calculated with earnings and book value of 3 years. A company may have certain 'extraordinary income / non-recurring income' or 'restructuring income / exp.'  during a particular year which can distort the acutal figures thus not reflecting the true financail health of an institution. So, average of 3 years or more helps to reflect a better financal picture.

Banks	PBVPE
Nepal Credit and Commerce	9.91
Nepal Bank Limited	10.8
Bank of Kathmandu	17.07
Agricultural Development Bank	18.52
Nepal Bangladesh Bank	18.61
Kumari Bank	20.33
Pravu Bank	20.93
Prime Commercial Bank	21.01
Citizen Bank	21.18
Civil Bank	21.3
Mega Bank	21.68
Sunrise Bank	21.69
Century Commercial Bank	21.85
Laxmi Bank	22.75
Global IME Bank	23.22
Janata Bank	25.43
Siddhartha Bank	26.78
Machhapuchre Bank	26.97
Nepal Investment Bank	32.92
NMB Bank	35.35
Sanima Bank	40.88
Himalayan Bank	52.04
Nepal SBI Bank	52.24
Nabil Bank	59.9
Everest Bank	60.04
Standard Chartered Bank	60.47
NIC Asia	63.05
Warren Buffet Presciption	<22.5

References:

Buffett E. Warren (1976), Benjamin Graham, Financial Analyst Journal.

Graham B (1973), The intelligent Investor, Revised Edition, New York: HarperCollins.

Jeremy Seigel (2002), Stocks for the Long Run, p.94, McGraw-Hill.