Dividend 25: Value Opportunity - Stocks Below Book Value

Strong Balance Sheets, Low Share Prices

In the fourth quarter of 2025, a notable valuation discrepancy is observed among companies listed in the Dividend 25 Index of Borsa İstanbul (BIST). Strong cash flow and regular profit distribution distinguish these firms, yet their share prices are trading below their book values. This situation presents a valuable opportunity for long-term investors, especially in light of prevailing short-term selling pressures in the market.

Discounts in Market Value and P/B Ratios

Analysts express that the P/B (Price/Book) ratio being below 1 for high dividend-yielding companies indicates a significant discount on share prices relative to their book values. Sectorally, this situation is particularly pronounced in industrial, finance, and holding shares.

Evaluation Potential with Strong Balance Sheets

Moreover, despite the weak performance of the Dividend 25 Index over the last three months, the balance sheets of the aforementioned companies have remained robust. This development unveils the potential for reevaluation of dividend portfolios after entering 2026.

Company Analyses

Some companies in the Dividend 25 Index:

• Şişecam (#SISE): P/B 0.46, P/E 40.3.
  It is trading at a discount with a strong cash flow in the glass industry.
• Alarko Holding (#ALARK): P/B 0.52, P/E 325.8.
  The value potential in energy and contracting projects is preserved.
• Anadolu Grubu Holding (#AGHOL): P/B 0.60, P/E 78.5.
  It is trading below book value with a diverse portfolio of investments.
• Doğuş Otomotiv (#DOAS): P/B 0.63, P/E 11.6.
  It has high profitability in the automotive sector, trading at a discount.
• Koç Holding (#KCHOL): P/B 0.65, P/E data not disclosed, market value 387 billion TL.
  Despite a strong balance sheet, it is trading at reasonable multiples.
• İş Bankası (#ISCTR): P/B 0.78, P/E 6.11.
  Continued high discount in the banking sector.
• Turkcell (#TCELL): P/B 0.94, P/E 8.93.
  It is trading at a price close to its book value in the telecommunications sector.

The average P/B ratio of these 6 companies in the Dividend 25 Index has been determined to be 0.66; this means that the market values of the companies are at 66% of their book values. Especially, this ratio is significantly below the overall median of 1.15 for the index, highlighting that these stocks hold the highest potential for value as investments in light of the possible recovery in 2026.