This means that the stock is trading at a discount to the book value.
Jul 25 2013 12:10 PM
Before you buy the stock it is important to understand why is it trading at a discount to the book value. It might be issues such as legal problems, structural problems in the market etc. If it is one of these problems then it does not make sense to buy the stock.
But in your research if you find that the reason is due to a temporary problem that will go away then it might be a bargain buy,