Key Takeaways Warren Buffett has pointed out that book value can significantly misstate the intrinsic value of a business.He prefers using intrinsic value, "the discounted value of the cash that can ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 ...

Get ready for charts, images, and tables because they are better than words. Your continued feedback is greatly appreciated, so please leave a comment with suggestions. This one is going to be short ...

Value investors have preferred the price-to-earnings ratio or P/E since time immemorial as a means to identify value stocks. However, in the case of loss-making companies that have a negative price-to ...

Given the recent volatility in stocks, value analysis is becoming more and more important. In value stock analysis, most investors use the P/E ratio to search for lucrative stocks but there are other ...

Among 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 easy ...