I calculate BV/S in a very similar fasion as mastermind, but I would warn that BV/S does not equal value. Since 1979 LUK has grown its BV/S by a CAGR of 19.1% per year. This far surpasses its cost of equity. So, if we are using history as a guide then LUK should trade at a multiple to BV/S. But the real question is in the future will LUK be able to continue to compound its BV/S by more than its cost of equity capitl. Personally, I believe that they will and think that the current stock price is a great buying opportunity.
My biggest concern with LUK is that their Chairman, Ian Cumming, who has been so instrumental in the companies success will be stepping down in 3 years. This is a major loss and probably explains much of the drop in price. With this announcement it becomes even more important to monitor and analyze the next generation of leaders.
Maybe those who believe that the value of their portfolio will continue to decline in the market place and cause the BV to decline further.
They are dependent on a growing world economy you know to fund their holdings and send the stock prices higher.
I don't see that here. Do you? What I do see, if you are an investor with a multi year time frame an opportunity to buy shares on a declining price scale that you might reasonably expect to sell on a rising price scale two or three years from now.