How to Avoid a High Price to Book

The lower price to book means the lower price you are paying compared to how much book value you can get, and obviously lower is better. A 1.5 ratio is something that is kind of like that middle point for me, below 1.5 I start to get cautious. The past isn't indicator of future, but it's a good generality and it's definitely something we want to consider based on this kind of research and it logically makes sense as well.