Some argue that the price-to-book-value ratio has lost its relevance due to the increasing significance of intangible assets
Is “value” dead? Or have we just been measuring it in the wrong way?
It’s an urgent question, because value stocks—when defined according to the traditional criterion, low price-to-book-value ratios—have lagged behind growth stocks for at least a decade now. And though value stocks in the past have come roaring back after going through similarly long periods of lagging, some researchers are questioning whether they will do so again.