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Strategies & Market Trends : Value Investing

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To: Elroy who wrote (62246)7/26/2019 11:47:56 PM
From: Paul Senior  Read Replies (3) of 78753
 
"A Value Stock is a stock with a price to book below its comparable group"


I pretty much never look at it in this relative way. I only look at p/bk for a company compared to its own history.


Sometimes pundits will say, "stock xyz is cheap because it trades at a lower multiple (regarding p/e and/or p/b and/or p/sales" than its competitors/peer group. Doesn't mean much imo. And sometimes you even will read about a company (non value) that trades at high p/e -- 21x earnings+, for example, but the writer will say it's a buy or possible buy because it's cheaper than its peer companies' p/e.


I've found purchasing a stock like that is a good way to get killed.



Jmo, of course. Others may have a different experience.



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