Dear readers, when it comes to investing, investors seek value and would like to invest in a stock which is undervalued that is having a Price-to-Book ratio (P/B) of less than 1. At the same time, income investors seek to achieve a passive income stream through dividends, hence income investors seek to invest in high dividends stock. So when it comes to a convergence of both the above camps, I believe Singapore stocks which are undervalued and which offer a dividends yields of more than 5% fully satisfy both investing camps.

On the Singapore stocks markets, there are currently 50 Singapore stocks which are both undervalued and which offer a dividend yield of more than 5%. With such a selection, how do we ensure which of these stocks offer the best value taking into consideration dividend yields and P/B ratio?

A method which I have learnt before and which I …