"Theoretical Value" applies only to derivatives such as options. TV is based on volatility, interest rates, and time until expiration. Book value applies to equities, and as mentioned prior here, you really need to spend some time going over the financials. Even after doing so, you can be blindsided with missed earnings etc. We have full time research going on to determine valuations in over 1000 pairs of stocks so that we can hopefully be long the "right" stock and short the stock of lesser value. Not an exact science by any means, but it's pretty much the best that can be done. FWIW, Don
With sales you cannot hide, tweak or twiddle the number. ================== You can tweak or twiddle every other number. HD vendor return program fiasco is an example. Periods of inflation, imo makes it easier to tweak and twiddle cost of goods.