I am lazy compared to you. I could never spend the time you have n the past few days trying figure out formulas. lol Just wanted to add...There are loads of companies that trade over book value. You have to remember that book value is a very conservative number and doesn't always represent the real value. And then when you find a company that is trading well below book value you have to wonder why it is. Why would a company be so undervalued?
Value Play or Value Trap?
If it's obvious that a company is trading for less than its book value, you have to ask yourself why other investors haven't noticed and pushed the price back to book value or even higher. The P/B ratio is an easy calculation, and it's published in stock summaries on any major stock research website. The answer could be that the market is unfairly battering the company, but it's equally probable that the stated book value does not represent the real value of the assets. Companies account for their assets in different ways in different industries, and sometimes even within the same industry. This muddles book value, creating as many value traps as value opportunities. (Find out how to avoid getting sucked in by a deceiving bargain stock in Value Traps: Bargain Hunters Beware!)
