Strategy Intermediate: Value Investing

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1.
For value investors, which of the following would be the least helpful in evaluating a company?
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Quarterly sales. A value investor usually focuses on factors that reveal the fundamental capacity and potential of the company over the long term.
2.
A low price-to-book (P/B) ratio means _______.
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Less than 1. Mathematically, it means less than 1.
3.
Value investors aim to assess a stock based on its historical performance in the market.
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False. Value investors aim to assess a stock based on the companys strengths and prospects, independent of the stocks performance.
4.
A value stock is one that is undervalued in the marketplace.
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True. A value stock is worth more than its current market price indicates.
5.
Value investors identify variables that may push up the price of a value stock in the next two or three years.
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False. Value investors identify variables that may push up the price of a value stock in the near future.