
If you made it through price to earnings ratio, price to book ratio will be a piece of cake.
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Book Value is a pretty easy one as compared to Price to Earnings. So let’s get into it we will need it for other calculations.
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To follow up our Graham intro we will investigate Graham’s first insurance technique of buying on the cheap. Graham used a number of ratios to determine if a company is cheap. The first ratio we need to look at is the Price/Earnings ratio.
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