Why Use Book To Market And Not Price To Book?

Why Use Book To Market And Not Price To Book? by Tim du Toit, Quant Investing [klarman] Why do think we recommend that you use the book to market ratio, and not price to book when screening for undervalued companies? A question we get a lot If you don’t know you are not the only one – it is a question we have had from a lot of screener subscribers. The simple answer – book to market gives you better results. That is also the reason why you see that all academic research studies use the book to market ratio. Let me…