Is Book Value No Longer Relevant? Sorta True
For students of Benjamin Graham and David Dodd, book value has an integral part to play in the evaluation of a company. Price to book value forms a vital part of the so-called 'Graham Number,' which is named after Benjamin Graham (who is widely considered to be the Godfather of value investing) and is used as a general test of trying to identify stocks that are currently selling at an attractive price.
Any stock price below the Graham number is considered undervalued and thus worth investing . . .
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