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.

There are many ways to estimate the value of a company. One ratio that is popular with value investors, in particular, is the price/book ratio, which compares a company’s share price with its book ...

The price/book (P/B) ratio measures a company’s stock price compared with its book value. The ratio is calculated by taking the market price per share of an investment and dividing it by the book ...