5 Low Price-to-Book Stocks Worth Buying in July

When evaluating a company's value, investors mostly look at a stock's price-to-earnings (P/E) or price-to-sales (P/S) ratio. While P/E is the ratio of annual earnings to stock price, P/S reflects the amount investors pay for each dollar of revenues generated by the company. It is calculated as below: Now, let us understand the concept of book value. It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders' equity on the balance ...