Compass Diversified Holdings Price to Book Ratio

Compass Diversified Holdings posts a P/B ratio of 1.46. That is below the Consumer Discretionary sector average of 6.33. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.

For Consumer Discretionary stocks, a P/B ratio near 6.33 is typical. Compass Diversified Holdings's 1.46 is lower that level. That is roughly 77.0% below the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.

Compass Diversified Holdings's P/B ratio of 1.46 comes from dividing a price-based measure by a related financial statistic. Changes can come from the stock price moving, the underlying fundamental shifting, or both. Track both the level and the trend — a rising multiple on falling fundamentals is a different story than a rising multiple on rising earnings.

Context for CODI's P/B ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 6.33), and (3) consistency with growth and profitability. This page covers the first two; Compass Diversified Holdings's other metric pages and overview cover the third.

Judging Compass Diversified Holdings against Consumer Discretionary peers is usually better than using a market-wide rule of thumb. Business models inside Consumer Discretionary are more comparable, which makes gaps in P/B ratio easier to interpret. Start with 1.46 here, then scan peer and history charts to see if the gap is persistent.