Stock Ideas

Two 'cigar butt' stocks with attractive book values

Which stocks would Benjamin Graham pick in India today? Donning value investing caps, we applied price/book valuation with some other filters to arrive at two such stocks

Two 'cigar butt' stocks with attractive book values

Any value investor will tell you that the best time to buy a stock is when it is trading below its intrinsic value. But how does one arrive at the intrinsic value of a company? There are different ways to arrive at a company's worth. One of them is to look at the book value of a company. A company trading at a price less than the net book value is considered to be attractively priced. Looking at price to book value is a very useful metric, as the market can be inefficient at times and ignore companies that are actually trading at less than their net worth.


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