CompanyGraph
Use to find companies where this pattern is active.
Three signals describe the position: the price-to-book signal indicates price below book value, current ratio shows adequate liquidity, and the equity ratio is contained. Together they describe a book-value discount alongside balance-sheet support.
State
Deep value position
Emergence
Price is below the book-value-per-share threshold while liquidity and equity-funding ratios are adequate. When the price-to-book signal indicates the stock trades below book value, the current ratio shows adequate near-term liquidity, and the equity ratio is contained, the stock trades at a book-value discount with balance-sheet support. Book value here is the accounting figure — it includes intangibles and goodwill and is not the same as tangible value or liquidation value.
Limits
This story identifies a book-value discount alongside balance-sheet safety, not investment opportunity or catalyst. It does not measure tangible or liquidation value, predict when or if any discount will be recognized, assess why the discount exists, or indicate whether the business is viable. Value traps can persist indefinitely.
Explanation
Each signal represents an independent observation: Below Book Value (legacy typeKey 'asset-play') measures the price-to-book ratio inverted. A high score means the stock trades below book value. Book value is the accounting figure from the balance sheet — it includes intangibles, goodwill, and other non-cash items, and is not the same as tangible asset value or liquidation value. Current Ratio measures short-term liquidity. Adequate coverage indicates the company can meet near-term obligations. Equity Ratio measures the proportion of assets funded by equity. A contained ratio limits the share of asset value claimed by debt. When all three align, they describe a stock trading below its book value with balance-sheet support — a structural observation, not a measurement of intrinsic value or a Graham-tradition deep-value diagnosis.
Interpretation
This story identifies a book-value discount with balance-sheet support, not an investment recommendation. It does not measure tangible or liquidation value, predict whether any discount will close, identify catalysts, or assess business viability. Stocks below book value can remain there indefinitely or be value traps.