|Do you sometimes use your definition of book value when making decisions about whether to buy or sell?|
No, never. I sometimes use cash per share when making decisions. Like, I've bought stocks for $3 when they have $4 cash per share and no debt, something like that. I am more oriented toward growth investing, technology stocks.
Don't ask me how I stumbled on UAN......
To me, your book value definition is unusable.
In my definition of value stock, I didn't provide a definition of book value, so I'm not sure what mean by my definition being unuseable.
I think a value stock is defined by it's "assets" being undervalued relative to some group - S&P 500 perhaps, it's peer group of stocks (staples, semiconductors, whatever) perhaps.
For example, if one semiconductor stock trades at 2x book while the average semiconductor stock trades at 5x book, I would say the first one is the value stock of the semiconductor segment.
I'm not making the definition precisely, others can do that. I'm just saying the concept of a value stock is one who's assets are undervalued relative to some meaningful peer group. The measurement of the asset number is usually some derivative of the book value - that's why I wrote "adjusted" book value. You can adjust the book value however you think makes sense.