New way to value stock? | The Straits Times

New way to value stock?

Retailer Nordstrom’s shares have almost tripled in the past year. At 20 times reported book value, the stock ranked among the most expensive in the Russell 3000.
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(BLOOMBERG) - The higher stocks go, the louder the forecasts for their demise. Prices are hopelessly stretched, warn the naysayers - the gains aren't justified by earnings.

But to a growing number of investors, the problem is not bloated valuations. It is that longstanding accounting standards mis-classify billions of dollars of cash-cow assets as if they're drags on businesses.

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