A company’s price to book ratio (P/B) is a fundamental measure often used by investors to determine the value of the stock in relation to the overall value of the company. A low P/B can indicate that a company’s stock is currently undervalued, offering a strong buying opportunity.

The P/B ratio, which compares the market’s valuation of a company to the actual book value of a company, is calculated as:

Price to Book (P/B) = Price per Share/Book Value of Equity

A P/B of less than 1 indicates that a company’s stock is selling for “less than book”; in other words, the market value of a company, determined by its stock price, is less than its actual worth, as indicated by its book value…

Read more at http://seekingalpha.com/article/318226-34-stocks-with-over-10-return-on-equity-selling-for-less-than-book-part-1-basic-materials

Read the entire series:

1. 34 Stocks With Over 10% Return On Equity Selling For Less Than Book, Part 1: Basic Materials
2. 34 Stocks With Over 10% Return On Equity Selling For Less Than Book, Part 2: Consumer Goods
3. 34 Stocks With Over 10% Return On Equity Selling For Less Than Book, Part 3: Financial
4. 34 Stocks With Over 10% Return On Equity Selling For Less Than Book, Part 4: Healthcare
5. 34 Stocks With Over 10% Return On Equity Selling For Less Than Book, Part 5: Industrial Goods
6. 34 Stocks With Over 10% Return On Equity Selling For Less Than Book, Part 6: Services
7. 34 Stocks With Over 10% Return On Equity Selling For Less Than Book, Part 7: Technology