Price-to-Book (P/B) is an important measure for publicly traded banks. Any bank with a P/B value of over 1 is a vote of confidence for that bank. But many banks trade under 1. The theory is that it's difficult to quantify the risks inherent in banking so if a bank's share trades over 1 it's considered a sturdier banking operation. But there is such a thing as too low a book value. With a P/B of 0.47 for $Citigroup(C)$ one wonders whether there is room for a value investment. What are your thoughts?
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