Wall Street Oasis - Investment Banking & Finance Community: Does book value even matter?

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Wall Street Oasis - Investment Banking & Finance Community The Wall Street Finance Community where investment bankers, consultants, traders, private equity and hedge fund professionals come to learn and play.

Does book value even matter? Jul 5th 2013, 21:28, by Oddball Stocks Book value is praised as the one true metric that matters to investing, and derided as an accounting fiction.  Book value is fascinating, on one hand it's an accounting creation, yet on the other hand it's a very rough estimate for the tangible value of the company. At the most basic level book value is the sum of a company's assets minus all liabilities.  What's left over is termed equity, or a company's book value.  A company's book value isn't anything specific, it's just the remainder from subtracting two values, assets and liabilities. Value investors place a lot of emphasis on book value, for most book value represents a tangible high water mark for an investment.  What's that you say, you are a value investor but don't care about book value and only growth?  My friend you are a value GARP investor, you're looking for cheap growth, you're in good company, many "value" investors are really trying to buy growth cheap.  Read on to discover how those of us with plaid sport coats and elbow pads view book value. read more Media files: preview (image/png, 0 MB)

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