What Book Value Means to Investors
For value investors, this may signal a good buy since the market price generally carries some premium over book value. Additionally, companies in certain industries may experience drastic shifts in their market or book values, further complicating accurate assessments. Therefore, it’s imperative for investors to consider industry context when using the B/M ratio. Furthermore, it’s crucial to consider the context of the industry in which the company operates. Certain sectors, like technology, may naturally exhibit lower B/M ratios due [...]