Book-to-Market Ratio Failing But Still Loved
June 9, 2021 - Value Premium
Is firm book value-to-market price ratio (B/M) obsolete due to growing importance of intangible assets? Is it still widely used by institutional investors? In their May 2021 paper entitled “Going by the Book: Valuation Ratios and Stock Returns”, Ki-Soon Choi, Eric So and Charles Wang examine continuing of B/M for value investing and implications of… Keep Reading