Home Builders Are Trading at 60% of Book Value Projecting Book Value Forward

Jay'd: Home builders look incredibly cheap relative to earnings, but earnings also look unusually high. Book value or net worth is equal to a company's assets minus its liabilities. Jay'd says these companies are trading at 60% of his projections for their book values - which has historically been the low point during recessions. If a soft landing is coming, it's a good time to buy in his view. And if a hard landing is coming,. well, share prices might fall further from here, but long term investors might also make out just fine.