TITLE:
P/B Ratio to Stock Price and Correlation Analysis of Other Financial Indicators
AUTHORS:
L. Naranchimeg, B. Bolor
KEYWORDS:
Price to Book Ratio, Return on Assets, Return on Equity, Earnings per Share, Price to Sales Ratio
JOURNAL NAME:
iBusiness,
Vol.14 No.1,
March
24,
2022
ABSTRACT: In recent years, the stock market of Mongolia has
become more active than ever with increased number of IPOs and SPOs and
addition of number of new products in the market. With the objectives to
determine and estimate the relations between P/B ratio to stock rates and other financial indicators. We have conducted the
research and analyzed the 2007-2020 trading reports, the dividends distribution, and the
financial reports of 42 companies with active trading lists on the Mongolian
Stock Exchange identified as I and II classification stocks. We have selected the indicators such as, the size of company, dividend payout ratio, return on assets, return on equity, earnings per share,
growth of earnings after taxes to be identified as other financial indicators and we have finalized the estimation. According to the results of regressive analysis,
based on 565 monitoring data of 42 companies,
the indicators such as, return on assets, return on equity, earnings per share have
shown direct correlation to the stock rates; however, other indicators have
shown no correlation at all. Thus, further studies on the non-financial factors
that have impacts on P/B ratio of stock rates have to be done thoroughly by
researchers and analysts.