FYI: An analysis of book value captures things like plants and equipment and facilities and hard-money, real assets that corporations have managed to accumulate over their lifetimes.
And when the cost of money is higher, these things are more highly valued by investors because they are expensive to replicate and costly to replace.
An analysis of book value doesn’t capture things like intellectual property and brand, intangible assets that corporations have accumulated or are currently accumulating.
Regards,
Ted
https://thereformedbroker.com/2019/08/09/when-everything-that-counts-cant-be-counted-2/
