In a rising
stock market, all eyes are on the income statement. But in a
flat or falling market, the balance sheet moves into the spotlight. Investors
want to know the real core accounted values of the company.
If you look at the
book value per share, you can easily identify stocks that are traded below
their accounted assets.
If a
company’s P/B ratio is less than one, the shares are selling for less than the
value of the company’s assets.
What Is
Book Value?
Book value
is a measure of all of a company's assets: stocks, bonds, inventory,
manufacturing equipment, real estate, etc. In theory, book value should include
everything down to the pencils and staples used by employees, but for
simplicity's sake companies generally only include large assets that are easily
quantified.
Today I’ve
screened my Dividend Achievers list by stocks with a current P/B ratio below
one. 19 stocks matched exactly my criteria. The attached list shows all of
them, sorted by the lowest ratio to the highest.
Here are
the highest yielding results in detail…