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Financial Alchemist

Financial Alchemist

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Financial Alchemist covers financial markets and investing. Current market conditions are analyzed as well as investment opinion on select stocks. Additionally, the site includes fundamental analysis strategies and insight regarding market theory. Ar

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Recent Posts Tagged With 'p b ratio'

  • Understanding the Drivers of the Price to Book Multiple

    Posted on Thursday September 20th, 2007 at 02:24 in p b ratio

    Price to book ratios are a popular method for gauging a stocks relative value. Just like price to earnings ratios, P/B multiples that are relatively high usually signify that the stock is overvalued. Investing in low P/B companies has forever been a...

  • High P/B Multiples do not Preclude the Notion of "Value"

    Posted on Thursday June 7th, 2007 at 15:03 in Valuation, p b ratio

    Low price/book ratios have always been a primary tool to the value investor. Ben Graham popularized the ratio with his version of “net-net” stocks which were companies trading for less than net liquid assets. In today’s markets, those particula...