The P/B

日期:2015/06/20

Ratio used to be a favorite of value investors and is still used to separate growth from value in some metrics, always showing that growth beat value on a prospective basis. The return on capital is a much better metric. As compounding works wonders. P/b has been the standard since 1970, and has caused almost as much mischief and wrongful, hurtful studies as pairs trading.