OT-Tim~tftr~no problem (EV vs book value)~others seem to not have understood it either (Greg?)
...it is a good gauge to consider at times. Like when there is "take over" speculation (GE and VTSI comes to mind!)
Personally, I like to toss it into the mix when evaluating a company to invest in and am looking for a ratio of 1:1 or lower... NOT higher...
When you find one in that category they become a better take out possibility IMO
Lastly, don't loose sight of the fact that a 20 PE means you need 20x earnings growth just to stay in line with today's valuation.
I know they vary, but have been successful in staying under the 20ish area
best!
kp
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