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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (16631)	3/15/2003 1:47:45 PM
From: jeffbas	Respond to of 78628

Paul, I tend to look at Price to Book, etc. ratios by adding in the debt to the market valuation of the shares, and subtracting any excess cash. Even that may not go far enough in making comparisons between companies, since the debt can be toxic, and in a market like this can't easily be replaced by equity. If you do this your auto company ratios will look a lot different. (I admit with this method I don't quite know what to do about things like large amounts of secured auto leasing debt.)