5 Low Price-to-Book Value Stocks to Buy in December

Core Viewpoint - The price-to-book (P/B) ratio is a valuable metric for value investors to identify potentially undervalued stocks with strong growth prospects [1][2]. Group 1: Understanding P/B Ratio - The P/B ratio is calculated by dividing the market price per share by the book value of equity per share, indicating how much investors are willing to pay relative to the company's book value [2]. - A P/B ratio under 1.0 is generally considered favorable, suggesting a stock may be undervalued, while a ratio under 3.0 is also acceptable for value investors [2][7]. - Stocks with a P/B ratio greater than 1.0 may be seen as overvalued, while those under 1.0 could indicate weak returns or overstated assets [9][10]. Group 2: Book Value Definition - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities [5]. - It is calculated by subtracting total liabilities from total assets, often equating to common stockholders' equity [6]. Group 3: Identified Stocks with Low P/B Ratios - Pfizer (PFE) is highlighted as a leading drugmaker with a projected 3-5 year EPS growth rate of 12.5% and currently holds a Zacks Rank 2 and a Value Score of A [17][18]. - General Motors (GM) is noted for its automotive production and has a projected EPS growth rate of 12.8%, also holding a Zacks Rank 2 and a Value Score of A [18][19]. - Select Medical (SEM) operates healthcare facilities and has a projected EPS growth rate of 10.4%, with a Zacks Rank 2 and a Value Score of A [19]. - AXIS Capital Holdings Limited provides specialty insurance and has a projected EPS growth rate of 27.3%, currently holding a Zacks Rank 2 and a Value Score of A [20][21]. - ZIM Integrated Shipping Services, with a projected EPS growth rate of 28.4%, holds a Zacks Rank 1 and a Value Score of A [22].