Subject: Re: Value, when to buy
If I could show a third order polynomial trendline, you would see that the trendline changes from being curved upward (on the left) to curved downward (on the right) at a P/ending B of about 1.5, where the 3-year return is 10%. At a P/ending BV of 1.0 the 3-year trendline return is about 22%, and at a price/ending book of 2.0 the 3-year trendline return is about -2%. The tendline return at a P/V 1.4 is about 11%, and at a P/B of 1.6 the trendline return is about 9%.