Innovative Industrial Properties shares fell by -2.8% during the day's morning session, and are now trading at a price of $110.89. The company has a 52 week high of $265.98 and a 52 week low of $87.47. Is it time to buy the dip?
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. The company belongs to the Real Estate sector, which has an average price to earnings (P/E) ratio of 27.16 and an average price to book (P/B) ratio of 2.39. In contrast, Innovative Industrial Properties has a trailing 12 month P/E ratio of 33.9 and a P/B ratio of 1.8.
P/B ratios are calculated by dividing the company's market value by its book value. The book value refers to all of the company's tangible assets minus its liabilities -- meaning that intangibles such as intellectual property, brand name, and good will are not taken into account. Traditionally, a P/B ratio of around 1 shows that a company is fairly valued, but owing to consistently higher valuations in the modern era, investors generally compare against sector averages.