Strategy Intermediate: Value Investing

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1.
To evaluate a company, a value investor might look at _______.
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Its book value. A value investor would focus on factors intrinsic to the company to determine its likely future performance.
2.
A low price-to-book (P/B) ratio means _______.
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Less than 1. Mathematically, it means less than 1.
3.
A value stock is issued by a company that _______.
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Has the resources to grow. A careful review reveals that it will likely grow in the future, even during economic downturns.
4.
Which of the following best suggests that the price of an undervalued stock may soon increase?
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A corporate takeover is imminent. An investor may expect the takeover announcement to push up the price of the undervalued stock.
5.
A company's book value is _______.
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The value of its assets minus liabilites. Book value is the value of a company's assets.