An interesting piece here at the China Stock Blog which charts price against book value for Chinese Internet stocks. Global Sources and Sina show up at 4.6 times book value against 21.6 times for Baidu which, as I said the other day, still looks horribly over-valued to me.
Charts: Valuing US-Traded Chinese Internet Companies Based On Book Value & Tangible Book Value: "
Price / Book Value ratios of stocks covered in the Chinese Internet sector ranged from 21.6 (BIDU) down to 1.9 (JRJC), with a median value of 5.3.
Price / Tangible Book Value ratios ranged from 22.1 (BIDU) down to 1.9 (JRJC), with a median value of 7.1.
Tangible Book Value differs from Book Value by subtracting out the value of intangible assets from the equation Book Value = Assets - Liablilities. Examples of intangible assets are goodwill, patents, capitalized start-up expenses and deferred financing costs.
Data in table version — click on a ticker for opinion and analysis of the company:
| 05/11/06 | Book | Price/ | Tangible | Price/ | ||
|---|---|---|---|---|---|---|
| Ticker | Company | $Close | Value | BV | BV | BV |
| BIDU | Baidu.com, Inc. | $81.51 | $3.78 | 21.56 | $3.70 | 22.06 |
| CTRP | Ctrip.com Inter | $49.61 | $2.97 | 16.72 | $2.91 | 17.04 |
| GIGM | GigaMedia Ltd. | $10.37 | $2.00 | 5.19 | $1.36 | 7.60 |
| GSOL | Global Sources | $12.03 | $2.59 | 4.65 | $2.59 | 4.65 |
| JOBS | 51job Inc. | $25.35 | $3.86 | 6.57 | $3.80 | 6.66 |
| JRJC | China Finance O | $6.40 | $3.33 | 1.92 | $3.33 | 1.92 |
| LONG | eLong Inc. | $15.40 | $5.36 | 2.87 | $5.17 | 2.98 |
| NCTY | The9 Ltd. | $26.25 | $4.82 | 5.45 | $3.19 | 8.24 |
| NTES | Netease.com Inc | $21.28 | $2.27 | 9.38 | $2.27 | 9.38 |
| SINA | Sina Corp. | $27.57 | $6.00 | 4.59 | $4.27 | 6.46 |
| SNDA | Shanda Interact | $13.45 | $2.85 | 4.72 | $2.11 | 6.39 |
| SOHU | Sohu.com Inc. | $26.79 | $3.78 | 7.09 | $2.11 | 12.67 |
Data: Capital IQ
Related:
- Most recent opinion and analysis of China stocks
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Aside: Did you know that Seeking Alpha now publishes a one-page recap of Jim Cramer’s Mad Money stock picks?
(Via China Stock Blog.)
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