Durable Consumer Companies Below Book Value

Attractive Opportunities in the Durable Goods Sector

Durable goods and white goods sectors have prompted investors to look for new opportunities as the market values of certain companies remain below their equity levels. The Price to Book Ratio (P/B) being below one indicates that these companies' current market prices are trading at a significant discount relative to their real asset values. This situation becomes more pronounced, especially in fluctuating market conditions.

Valuation Discussions Strengthen in the Sector

From white goods to built-in products, heating systems to air conditioning manufacturing, this pricing trend triggers a general valuation discussion in the sector. The fact that companies maintaining a solid equity structure have market prices lagging behind is associated with rising material costs in the last two quarters, uncertainties, and fluctuations in investment appetites. This situation, combined with a slowdown in demand and fluctuations in export markets, creates a noticeable divergence in companies' financial indicators.

Companies to be Reviewed Below

The following companies are currently priced below their book values due to a P/B ratio under 1:

• Vestel (#VESTL): P/B 0.28 – Despite strong equity, its market value is trading in a low range.


• Vestel Beyaz Eşya (#VESBE): P/B 0.35 – Despite a large-scale equity structure, its high discount continues.


• İhlas Ev Aletleri (#IHEVA): P/B 0.47 – Trading significantly below its book value in the small appliance sector.


• Sanica Isı Sanayi (#SNICA): P/B 0.54 – A company trading at a low multiple in the heating systems market.


• Klimasan Klima (#KLMSN): P/B 0.55 – The difference between its book value and current pricing in the air conditioning and cooling products segment is noteworthy.


• Silverline (#SILVR): P/B 0.62 – Active in the production of built-in products, the company continues to remain discounted based on equity.

This situation allows investors to evaluate the extensive production and sales opportunities of firms operating in the durable goods sector across a wide geography.