In our recent article on the flaws in return on equity, we showed how it has no correlation with several different measures of valuation. However, there is one valuation metric, price-to-book (“P/B”), ...

Accounting book value suffers from a few major flaws when it comes to measuring valuation. Mergers and acquisitions represent some of the most common sources of artificial book value. Write-downs or ...

As Accounting Coach reports, book value can have two definitions in accounting. The first defines the liquidation value of a firm as in bankruptcy liquidation. Book value can also refer to the ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Vikki Velasquez is a researcher and writer who has managed, coordinated, and ...

This paper investigates the explanatory power of various measures that indicate the value of a firm's oil and gas properties. The empirical method relies on cross-sectional valuation models applied ...

Here's why book value is an important metric to Berkshire Hathaway. In his 2000 letter to shareholders, Buffett began including a table comparing Berkshire's book value growth to the returns of the ...

Planning is one of the pillars that anchor the successful implementation the future business strategies. Some planning activities are achieved through capital budgeting -- that is, appraisal of viable ...

Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues ...