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What was the market capitalisation of the JBH as at the reporting date of the latest...

What was the market capitalisation of the JBH as at the reporting date of the latest annual report? How does this compare to the net book value of the company at that date? If there is a difference, what do you believe has caused this?

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Answer #1

JB Hifi Limited is a public company based out of Australia. Market capitalisation of the Company as on 14 May 2020 is 4.02 billion with trading price of 34.20.

Book Value of the Company is 1044.1 million as on 30 June 2019.

Following are reasons of the difference between market capitalisation and book value-

1. Future earnings potential fetches higher market capitalisation

2. Demand for the shares of the Company is increasing and hence market cap is increasing

3. Small debt in the Company compared to peers and hence better risk attracting more investors.

4. High cash flows from operating activities

5. Higher dividend yield attracting more investors.

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