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Price-to-Book Ratio

On 09/01/2010, in Equities, Investment Strategies, by Jordan Wilson

Another common analytical calculation is the price-to-book (P/B) ratio.

This is popular among value investors.

While price-to-earnings considers a company’s future earnings potential as a way to determine share price, P/B incorporates what the company owns.

Not a ratio that I find very useful, but many others do, so you shall not suffer for my biases.

We will cover how to calculate and use P/B ratios, followed by limitations in the ratio’s effectiveness. Then I will show you how to make the P/B ratio a little more practical. 

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Types of Bond Issues

On 07/21/2010, in Fixed Income, by Jordan Wilson

Most of you will never directly invest in bonds, excluding perhaps government savings bonds.

Instead you will probably invest in bonds indirectly through mutual funds.

That is what I would likely recommend to most investors.

So why is it useful to learn a bit about individual bond terms and issues?

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