The price-to-book (P/B) ratio is widely favored by value investors for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book ...
Benjamin Graham is known for developing a fairly complex set of rules and formulas to determine a stock’s intrinsic value. In his final year, Graham offered a much simpler means of finding value, but ...
Price to earnings (P/E) and price to sales (P/S) are the first ratios that come to an investor’s mind while narrowing down a list of undervalued stocks. However, the price-to-book ratio (P/B ratio), ...