It hasn't been a great morning session for Prosus NV investors, who have watched their shares sink by -2.3% to a price of $14.66. 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.
Prosus N.V. engages in the e-commerce and internet businesses. The company belongs to the Communication Services sector, which has an average price to earnings (P/E) ratio of 18.85 and an average price to book (P/B) ratio of 3.12. In contrast, Prosus NV has a trailing 12 month P/E ratio of 18.3 and a P/B ratio of 2.5.
P/B ratios are calculated by dividing the company's market value by its equity's book value. Equity refers to all of the company's assets minus its liabilities. 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.
Prosus NV has moved 41.2% over the last year compared to -7.6% for the S&P 500 — a difference of 49.0%. Prosus NV has a 52 week high of $17.13 and a 52 week low of $7.91.
