It hasn't been a great afternoon session for MingZhu Logistics investors, who have watched their shares sink by -42.3% to a price of $1.01. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
MingZhu Logistics Holdings Limited, through its subsidiaries, provides trucking and delivery services using its truckload fleet and subcontractors in the People's Republic of China. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 21.46 and an average price to book (P/B) ratio of 3.7. In contrast, MingZhu Logistics has a trailing 12 month P/E ratio of -20.6 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.
MingZhu Logistics has moved -0.6% over the last year compared to -19.7% for the S&P 500 — a difference of 19.1%. MingZhu Logistics has a 52 week high of $6.5 and a 52 week low of $0.78.