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Podcast: Excess Returns
Episode: Is the Price/Book Ratio Dead?
Description: The Price/Book ratio has probably been the most important valuation ratio of the past century. If you look at the academic research that supports value investing, you won’t find any other ratio that is referenced more often. There is also no ratio that is used more by systematic value funds.
But the rise on intangible assets and other factors have led many to question whether the ratio has value any more.
In this episode, we look at the arguments for and against the Price/Book and whether it should still have a place in v...