You could make a reasonable argument for why these companies are better investments using fundamental metrics, like price to earnings or price to book value.
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In addition, ratios of price to sales and price to book value are bumping along their lowest levels of the past four years and are at substantial discounts to their five-year averages.
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As local and international investors have fled Japan's stock market, some 40% of the 1, 500 companies that are the bluest chips of Japan (the first section of the Tokyo Stock Exchange) trade below breakup value (a price-to-book value of less than one).
Tronox trades for less than book value, and at a 45% discount to its five-year average price-to-book value ratio.
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This share price results in a price to economic book value ratio of 1.0, implying no future growth in NOPAT.
In another measure, the ratio of price to tangible book value (shareholders' equity minus intangibles like goodwill), Citi is close to typical at 3.6.
When looking at Price to Tangible Book Value multiples, you have to ask yourself, what are the risks that Tangible Book Value per Share is overstated.
Really, the wide berth that a lot of investors are giving BofA now can be seen in its share price to tangible book value ratio compared to other banks.
Finally, the acquisition binge has left Danaher with a mountain of goodwill on its balance sheet--goodwill being the excess of the purchase price over the book value of the acquired business.
That price translates into a price to economic book value ratio of 0.5, which means the market is predicting a permanent 50% decline in its profitability, an awfully pessimistic assumption.
On a price to tangible book value, BAC stacks up well against its competition on a valuation basis, and trades at a bigger discount to tangible book value than all but Citibank.
This valuation gives it a 0.8 price to economic book value ratio, implying that the market expects a permanent 20% decline in NOPAT for SNDK. In the short term it is possible that SNDK might experience a decline in NOPAT, but over the long term it is hard to imagine this company experiencing the kind of permanent decline that its share price implies.
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What is clear is that the current share price, slightly below book value, is a bargain.
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Ardour Capital's Nasdeo says other traditional metrics, such as price-to-sales or price-to-book value, are not really much help either.
Its price-sales ratio is 27% below its 3.5 average since 2008, and the discount to its five-year average price-to-book value ratio is 31%.
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Beaten up Hovnanian Enterprises, for example, carries a price-to-book value ratio of 0.9, cheap relative to an average multiple since 1988 of 1.1.
In the ratio of price-to-book value China is, at 4.6, the second priciest, behind another country with a superheated economy: India, which trades at 4.9 times book.
The company, which provides services related to the design and testing of semiconductors, carries a price-to-book value multiple of 1.1, low relative to a five-year average of 1.5.
Nonetheless, it's on price-to-book value where Arnold shows his skepticism.
And what matters more, price-to-earnings or price-to-book value?
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Mr Osborne will also say the sale's valuation of Northern Rock's "price-to-book value ratio" - that is, its assets minus its liabilities - is higher than peers Barclays, Lloyds TSB or the Royal Bank of Scotland.
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The Price to Book ratio is a formula that represents the most recent share price of a company compared to its book value per share (the residual dollar value for common shareholders after assets are liquidated and all debtors are paid).
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It trades for 3.9 times sales, but its price-to-book-value ratio is just 1.2.
Why do they avoid low price-to-book-value stocks, even though the returns on them are higher than flashy technology stocks?
Alongside, though, the small-bank owner was being wooed by other large banks in the state and was holding out for a price close to three times book value.
Buffett set a specific price-to-book-value target for the buybacks, saying Berkshire ( NYSE: BRK-B) would buy back its own shares but only at prices up to a 10% premium over the then-current book value of Berkshire shares.
Chris Wang, of New York City hedge fund syw Capital Management, warns bargain hunters to steer clear of Capital One's alluring metrics, including its price of 0.25 times book value.
For example, Fidelity national trades for 0.72 times sales, 1.85 times book value and at a price-to-earnings growth ratio of 0.91.
Most value investors analyze companies based on their current financial performances, as measured by the stock price as a multiple of earnings or book value.
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