Is the relation between capitalization and book value of shares a good guide to investments?

Investment Control Investments Capitalization Finance Finance Management Banking &amp Finance

Question added by Siham Amer , Financial Analyst , Noor Al Hikmah Group
Date Posted: 2018/11/18

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by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

When the average price to book value is more than one, investors are willing to pay more than their book value. In general, stocks of good performing companies are traded at their book value.

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