A market price per share of common stock is the amount of money investors are willing to pay for each share. The price of shares rises and falls in response to investor demand. The obvious fact is ...

The book value of a company is the difference between that company's total assets and its total liabilities, as shown on the company's balance sheet. Book value represents the carrying value of assets ...

With Berkshire Hathaway's book value per share over- or under-estimating the true value of its businesses, Warren Buffett prefers alternatives to this accounting metric.

The Gordon model allows for the fact that the market might put a price on a stock that's different from what you might estimate using the equation above. A higher stock price than predicted implies a ...

You can calculate the price-to-book, or P/B, ratio by dividing a company's stock price by its book value per share, which is defined as its total assets minus any liabilities. This can be useful when ...

Any entrepreneur is going to set a high price on a company they created. Whether you're thinking of buying or looking to sell your own, you need objective metrics to set the right purchase price.

Price to earnings (P/E) and price to sales (P/S) are the first ratios that come to an investor’s mind while narrowing down a list of undervalued stocks. However, the price-to-book ratio (P/B ratio), ...

Nir Kaissar is a Bloomberg Opinion columnist covering markets. He is the founder of Unison Advisors, an asset management firm. Value investors rarely agree on how to pick stocks. Their objective is ...