Pingtan Marine Enterprise shares fell by -58.1% during the day's morning session, and are now trading at a price of $0.28. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly.
Pingtan Marine Enterprise Ltd., together with its subsidiaries, engages in the ocean fishing business. The company belongs to the Consumer Defensive sector, which has an average price to earnings (P/E) ratio of 24.21 and an average price to book (P/B) ratio of 4.09. In contrast, Pingtan Marine Enterprise has a trailing 12 month P/E ratio of 13.8 and a P/B ratio of 0.4.
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.
Pingtan Marine Enterprise has moved -1.5% over the last year compared to -15.7% for the S&P 500 — a difference of 14.2%. Pingtan Marine Enterprise has a 52 week high of $1.12 and a 52 week low of $0.28.