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  • BYD: The Next Auto Giant? [View article]
    There has been a lot of talk about Buffet's purchase of a 10% stake in BYD at a post-money valuation of $2.3 billion. I pulled BYD’s annual report and was able to calculate the following valuation metrics for the Buffet purchase:

    Price/Earnings – 12.3
    Price/Book – 1.18
    Price/Sales – 0.6

    Buffet's effective price per share was in the $1.12 range. Since BYD is now trading north of $4.00 (presumably from the Buffet halo effect) the market valuation metrics for investors are nowhere near as attractive as they were for Warren.
    Jun 08 06:11 am |Rating: +5 -1 |Link to Comment
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