There are tons of valuation methods out there. You name it you have it. Do note what I am saying here is my own view, I am not insulating any view of the merits or lack of the valuation method. PE and PB are child play when u look at reproduction cost basis, DCF, DDM, ROIC, WACC, EV etc... The convention wisdom is used a range of valuation metrics for the right category of investment. What do I mean? If u doing asset play, most probably u need to break down all the balance sheet, look at intangibles etc, look at reproduction cost ( see B's blog post) If u want stable yield, then FCF, DCF, DDM, etc So what is my point? I think it is important to have a story backed by numbers and not a story of numbers. Why? Because numbers are highly dynamic, fluid. ......