In our recent article on the flaws in return on equity, we showed how it has no correlation with several different measures of valuation. However, there is one valuation metric, price-to-book (“P/B”), ...
In recent Danger Zone reports, I’ve highlighted how P/E ratios and return on equity (ROE) mislead investors. This week, I'm looking at another metric that leads would-be value investors astray. Price ...
The whole point of accounting is to present a precise financial picture of your business operations. By the accepted standards of the industry, financial accounting consists of five basic elements.