Microstrategy current book value is $128.35. Thus, PB(price to book) ratio is about 12.
Book value is the net value of a firm's assets found on its balance sheet.
Keep in mind, Saylor has NOT yet invoked the FASB rule valuing it's bitcoin at current market value.
They are still using price paid on the balance sheet, which averages $32,000.
At current value, the PB ratio is more like 5.5.
Virtually ALL of MSTR assets are bitcoin. If you are a believer in Bitcoin, should bitcoin assets be par with dollar as assets?
Of course not!
Now....I keep maintaining, MSTR sells for a multiple of asset value, not to be confused with book value.
However, and this is a huge however; Let's compare some other tech companies share price using the SAME METRIC.
Take NVDA. NVDA book value is $17.44 Thus NVDA PB ratio is 50.46
Apple has a book value of $4.79. Thus, PB ratio is 35.35
I can go on and on.
So, is MSTR REALLY overvalued and selling at too high a multiple?
To the contrary. It is undervalued using this same metric.
Wall Street is catching on....... $MicroStrategy(MSTR)$
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- AdamAniQAzem·04-10too highLikeReport