Trailing Price-to-Book Return (TTM)
factor.formula
Trailing Price-to-Book Return (TTM):
Average equity attributable to shareholders of the parent company:
The indicator consists of two formulas, among which:
- :
Refers to the total net profit attributable to the parent company in the past 12 months (rolling). This indicator is calculated on a rolling basis, which can better reflect the company's latest profitability and avoid the impact of accounting cycles.
- :
Refers to the average of the equity attributable to the parent company at the beginning and end of the period. The average is used to avoid deviations caused by the selection of time points and to smooth the fluctuations in shareholders' equity during the accounting period.
- :
Refers to the total equity attributable to the parent company's shareholders at the beginning of the reporting period (e.g., the beginning of the year).
- :
Refers to the total equity attributable to the parent company's shareholders at the end of the reporting period (e.g., year-end).
factor.explanation
The rolling price-to-book ratio (TTM) measures the efficiency of a company in generating profits using the capital invested by shareholders (shareholders' equity attributable to the parent company). This indicator is based on the net profit of the past 12 months and can better reflect the company's recent profitability. The use of average shareholders' equity is to smooth fluctuations in the balance sheet and provide a more stable measure of profitability. A higher rolling price-to-book ratio (TTM) is generally considered to be a signal of strong company profitability and high management efficiency, which is of great reference significance for value investment strategies. In addition, this indicator also reflects the ability of the company's management to generate returns using shareholders' equity, and is an important tool for evaluating the company's long-term value and attractiveness. In actual applications, investors often use the rolling price-to-book ratio (TTM) in combination with other financial indicators to more comprehensively evaluate the company's profitability and financial health.