Fundamental Valuation: How Low Could We Go? - Seeking Alpha
The above article lists the book value of the U.S. market and analyzes the ratio of price vs. book value of the companies during last crises. It appears that the market is not at or below its book value. Currently trading at 1.5 times, there is a long way down to go. This fall is a normal correction, looking at those values. During previous crises the price went below the book value. So, in the medium to long term, the indexes could go way lower than this.
The above article lists the book value of the U.S. market and analyzes the ratio of price vs. book value of the companies during last crises. It appears that the market is not at or below its book value. Currently trading at 1.5 times, there is a long way down to go. This fall is a normal correction, looking at those values. During previous crises the price went below the book value. So, in the medium to long term, the indexes could go way lower than this.
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