Core Insights - The Price-to-Book (P/B) ratio is a valuation metric that compares a company's market capitalization to its book value, helping investors identify undervalued stocks with strong fundamentals [1][2][6] - The P/B ratio is particularly useful in value investing, where investors seek stocks that are cheap yet fundamentally strong [1][10] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [6][8] Understanding Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities [4][5] - It is calculated by subtracting total liabilities from total assets, often equating to common stockholders' equity [5] P/B Ratio Analysis - The P/B ratio is calculated as market capitalization divided by book value of equity, providing insight into whether a stock is under- or overvalued [2][6] - Stocks with low P/B ratios and strong projected earnings growth are considered attractive investment opportunities [10][16] Screening Parameters for Investment - Stocks should have a P/B ratio lower than the industry median, a P/S ratio below the industry average, and a P/E ratio using F(1) estimates that is also lower than the industry median [12][13] - A PEG ratio of less than 1 indicates that a stock is undervalued relative to its growth prospects, while a minimum trading price of $5 and a substantial average trading volume are also recommended [14][15] Notable Stocks with Low P/B Ratios - CVS Health (CVS) has a projected 3-5 year EPS growth rate of 11.4% and holds a Zacks Rank of 2 with a Value Score of A [16] - Signet Jewelers (SIG) has a projected EPS growth rate of 12.2% and also holds a Zacks Rank of 2 with a Value Score of A [17] - KB Financial Group (KB) has a projected EPS growth rate of 12.33% and a Zacks Rank of 2 with a Value Score of B [18] - Affiliated Managers Group (AMG) has a projected EPS growth rate of 14.2% and a Zacks Rank of 2 with a Value Score of A [19] - PagSeguro Digital (PAGS) has a projected EPS growth rate of 11.3% and holds a Zacks Rank of 1 with a Value Score of A [21]

Key Takeaways CINF benefits from prudent pricing, an agent-centric model, and disciplined growth in Cincinnati Re. CINF actively returns capital, reflecting strong operating performance and financial flexibility. CINF boasts 65 consecutive years of dividend increases, with a current yield surpassing the industry average.Cincinnati Financial Corporation (CINF) has been trading above its 200-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of July 8, 2025, was $146. ...

Key Takeaways AFG's combined ratio has outperformed the industry average for over 20 years, with a 2025 target of 92.5%. AFG boasts 18 straight years of dividend increases, with a 10-year dividend CAGR of 12.4%. AFG benefits from consistent renewal pricing increases, reporting 35 consecutive quarters of rate hikes.Shares of American Financial Group, Inc. (AFG) have gained 6.5% in the past year, underperforming its industry, the Finance sector and the Zacks S&P 500 composite’s return of 16.9% and 21.1% and ...

Core Concept - The price-to-book (P/B) ratio is a key metric for value investors to identify undervalued stocks with potential for exceptional returns, calculated as market price per share divided by book value per share [1][5] Understanding Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [3][4] P/B Ratio Insights - A P/B ratio under 1.0 indicates a potentially undervalued stock, while a ratio above 1.0 suggests overvaluation [5][6] - Stocks with low P/B ratios can indicate strong growth prospects, but a low ratio may also reflect weak asset returns or overstated assets [7][8] Screening Parameters for Value Stocks - Stocks should have a P/B ratio lower than the industry median, a P/S ratio below the industry median, and a P/E ratio using F(1) estimates lower than the industry median [11][12] - A PEG ratio under 1 indicates undervaluation relative to growth prospects, and stocks must trade at a minimum price of $5 [13] - High trading volume and favorable Zacks Rank (1 or 2) are also important criteria for screening [14] Identified Low P/B Stocks - Centene Corporation (CNC) has a projected 3-5 year EPS growth rate of 11.5% and holds a Zacks Rank of 2 with a Value Score of A [16] - CVS Health (CVS) has a projected EPS growth rate of 11.4% and also holds a Zacks Rank of 2 with a Value Score of A [16] - The ODP Corporation (ODP) has a projected EPS growth rate of 14% and holds a Zacks Rank of 1 with a Value Score of A [17] - StoneCo (STNE) has a projected EPS growth rate of 25.3% and holds a Zacks Rank of 2 with a Value Score of B [18] - Paysafe Limited (PSFE) has a projected EPS growth rate of 17.9% and holds a Zacks Rank of 1 with a Value Score of A [19]

Key Takeaways Five stocks were screened for low P/B ratios, solid value scores, and strong projected EPS growth. STNE shows the highest 3-5 year EPS growth rate at 26.3%, followed by PSFE at 17.9% and USNA. All selected stocks have a Zacks Rank of 1 or 2 and meet key valuation, liquidity, and pricing criteria.Value investing offers an opportunity to enter the market and grab stocks that have otherwise been overlooked by the majority of investors and are thus trading at cheap multiples.Though price to earn ...

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-earnings (P/E) and price-to-sales (P/S) ratios, is a strategic approach to identify potential investment opportunities [1][3] - The P/S ratio is especially useful for evaluating unprofitable companies or those in early growth stages, as it reflects the value of revenue generated [3][9] Price-to-Sales Ratio - A P/S ratio below 1 indicates that investors are paying less than a dollar for each dollar of revenue, making it a favorable investment [4] - The P/S ratio is preferred over the P/E ratio because sales figures are less susceptible to manipulation compared to earnings [5] - It is important to analyze the P/S ratio in conjunction with other financial metrics such as P/E, price-to-book, and debt-to-equity ratios before making investment decisions [6] Screening Parameters - Companies with a P/S ratio less than the median for their industry are considered better investments [7] - Additional screening parameters include a P/E ratio below the industry median, a price-to-book ratio below the industry median, and a debt-to-equity ratio below the industry median [8] Company Highlights - **JAKKS Pacific (JAKK)**: A multi-brand company benefiting from acquisitions and a strong international presence, focusing on online retailing and digital experiences. It has a Zacks Rank of 1 and a Value Score of A [10][11] - **Green Dot (GDOT)**: A leader in prepaid cards and Banking-as-a-Service, with a strong balance sheet and low debt. It has a Zacks Rank of 1 and a Value Score of A [12][13] - **Signet Jewelers (SIG)**: A leading retailer of diamond jewelry, demonstrating strength in bridal and fashion segments, with effective inventory management and cost-saving initiatives. It has a Zacks Rank of 2 and a Value Score of A [14][15] - **Gibraltar Industries (ROCK)**: Focused on operational improvements and benefiting from high demand in agricultural facilities. It has a Zacks Rank of 2 and a Value Score of A [16][17] - **Pfizer (PFE)**: A major pharmaceutical company expecting growth in non-COVID operational revenue driven by new product launches and acquisitions. It has a Zacks Rank of 2 and a Value Score of A [18][19]

In value analysis, though price to earnings (P/E) and price to sales (P/S) are most preferred by investors, the underrated price-to-book ratio (P/B ratio) is also an easy-to-use valuation tool for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book value.The P/B ratio is calculated as below:P/B ratio = market price per share/book value of equity per shareP/B ratio reflects how many times book value investors are ready to pay for a sha ...