Pitfalls of using Price to Book Ratio.
This is something about using price to book to value a stock and and I just feel like writing it down. It is also to share with my personal friends. I have been seeing a lot of people using price to book ratio to value a stock and the problem with such a ratio has many deficiencies. In accounting, a constant issue is always the difficulty in relevance vs reliability. I will give a few examples here. Relevance vs Reliability Your parent bought a HDB flat for 50k 30 years ago, the current value now is 300k. How much...
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