This top recommendation has a price-to-book value of less than one
Book value, shareholder's equity figure divided by the total shares outstanding, is an indicator of financial strength. Shareholder's equity equals assets less liabilities. The Bowser Report's Ratings System awards a point to any company trading for less than its book value.
Over the years, many influential investors have used book value as a strong determinant of long-term value. According to an article by John Bajkowski in the September 2015 AAII Journal, "Numerous academic studies identify price-to-book value (P/B) ratio as being one of the best measures to identify undervalued and neglected stocks."* To calculate a P/B ratio, divide a companies current price by its current book value. Any ratio below one means the company is trading below book value.
One of The Bowser Report's top picks as a P/B ratio of less than one. Here's our most recent analysis on the company:
ADDvantage Technologies Group Inc. (AEY)
*Quoted from AAII Journal Volume XXXVII, No. 9, pg. 35.