The book value of a company is the difference between that company's total assets and its total liabilities, as shown on the company's balance sheet. Book value represents the carrying value of assets ...

You can calculate the price-to-book, or P/B, ratio by dividing a company's stock price by its book value per share, which is defined as its total assets minus any liabilities. This can be useful when ...

With Berkshire Hathaway's book value per share over- or under-estimating the true value of its businesses, Warren Buffett prefers alternatives to this accounting metric.

Value investors rarely agree on how to pick stocks. Their objective is generally the same — to buy companies as cheaply as possible — but there’s no consensus about how to measure cheapness. Some look ...

The Gordon model allows for the fact that the market might put a price on a stock that's different from what you might estimate using the equation above. A higher stock price than predicted implies a ...

Value analysis is the best approach to identifying great bargains. Though price-to-earnings (P/E) and price-to-sales (P/S) valuation tools are more commonly used for stock selection, the price-to-book ...

Among the valuation metrics, price-to-earnings (P/E) and price-to-sales (P/S) are more commonly used for stock selection. This is because calculations based on earnings and, to some extent, sales are ...

While there are a host of valuation metrics at one’s disposal, the first to cross one’s mind is the price-to-earnings ratio. However, in case of loss-making companies, the price-to-earnings ratio is ...

Nir Kaissar is a Bloomberg Opinion columnist covering markets. He is the founder of Unison Advisors, an asset management firm. Value investors rarely agree on how to pick stocks. Their objective is ...