Debt free stocks below book value: P/B under 1

The screen applies two tests to each company's latest balance sheet and current price. Debt to equity must be 0 or less, meaning no borrowings. P/B must be 1 or less. A company leaves the list when it fails either test, so the list changes as prices and balance sheets change.

Book value is the shareholders' stake on paper: assets minus everything the company owes, less the part of its subsidiaries that other owners hold, from the latest balance sheet. P/B is market cap, the share price times the number of shares, divided by that stake.

At a P/B of 1, the market prices the whole company at its book value. Below 1, the price is less than the books say belongs to shareholders.

Debt to equity is borrowings divided by the whole group's net worth. A value of 0 means no loans or bonds on the balance sheet. Lease liabilities are not counted as borrowings.

Heavy debt is a common reason for a P/B under 1. This screen removes that case, so the low P/B is not explained by loans.

A P/B under 1 does not show that a company is mispriced. The market may expect weak or negative profit, or may doubt that the assets are worth their recorded value, as with old inventory, unlisted investments or receivables that may not be paid. Very small companies with a near-zero P/B often trade in thin volumes.

With no borrowings, enterprise value (market cap plus borrowings, less cash) is at most the market cap, so cash held by the company lowers EV/EBITDA on this list. The P/E and earnings yield columns, and ROE on the profitability tab, show whether the company earns on its net worth.