What Is Book Value? 2 Mortgage REIT Stocks That Were Trading Close to It Until They Weren't
Book value is a simple financial construct in which you take the balance sheet figures for assets and subtract liabilities. What's left, if there is anything, is a company's book value. The math can get fairly complicated for some businesses when you have to take into consideration things like the value of brand names. However, other businesses, like mortgage real estate investment trusts (REITs), are relatively simple. For example, the book value of AGNC Investment (NASDAQ: AGNC) and Annaly Capital (NYSE: NLY) is essentially their portfolios of mortgage securities minus the debt they have taken on. But you don't even have to do any math to figure it out because both of these mREITs tell you their per-share tangible book value each quarter. And they were trading near the second-quarter value each of them presented, but that changed when they announced third-quarter results. Here's what you need to know. Image source: Getty Images. Continue reading