FYI: During the market’s recent tumble, the outperformance of value stocks—the market’s cheapest—has led to talks about a revival of the out-of-favor group. But there’s more than one right way to be a value investor.
In fact, there are many ways to measure whether a stock is cheap or not. Some of the most common metrics include price/earnings, price-to-book, and price-to-cash-flow ratios. The Russell 1000 Value index, the most widely watched value benchmark, uses price/book, while many prefer the ease of price/earnings.
Regards,
Ted
https://www.barrons.com/articles/theres-more-than-one-way-to-be-a-value-investor-1543485600?mod=hp_DAY_3
