It hasn't been a great morning session for Standard Chartered investors, who have watched their shares sink by -1.1% to a price of $8.07. 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.
Standard Chartered PLC, together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, Europe, the Americas, and the Middle East. The company belongs to the Financial Services sector, which has an average price to earnings (P/E) ratio of 14.34 and an average price to book (P/B) ratio of 1.57. In contrast, Standard Chartered has a trailing 12 month P/E ratio of 9.6 and a P/B ratio of 0.5.
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.
Standard Chartered has moved 25.5% over the last year compared to -3.8% for the S&P 500 — a difference of 29.0%. Standard Chartered has a 52 week high of $9.54 and a 52 week low of $5.81.
