Third of FTSE100 firms trading at NAV discount

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One in three FTSE100 companies is trading at a discount to its net asset value (NAV), reflecting the "incredibly cheap" market conditions, research suggests.

According to DigitalLook.com, 15 members of London’s blue-chip index are currently trading at less than half of their book value, with 29% trading at a discount. “Value investors like Warren Buffett have gone on the record to say that the market is now incredibly cheap by historic standards,” says DigitalLook director Andy Yates. “It takes a brave individual to bet against him. “However, like Warren Buffet you shouldn’t just buy on the basis of a low Price to Book Ratio alone. You would want to take into account other factors such as the company’s forward earnings and its ability to gener...

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