In Revival of Value Investing, Price-to-Book Back in Vogue
- Of four methods to pick cheap stocks, price-to-book won in ’16
- Morgan Stanley joins Jefferies to tout strategy in year ahead
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Buying stocks based on a low price-to-book value has been a terrible way to invest for a decade. Not any more.
This staple of value investing was the best of four key methods to identify cheap equities in 2016, according to calculations by Bloomberg News, and will remain a “valid and relevant metric” in the year ahead, strategists at Morgan Stanley said.