It gives really good idea about a value of a stock
How to calculate
1. Calculate Price to Book Ratio
2. Calculate Price to Book (Net Asset) Ratio
3. Then Multiply These 2
This ratio combines a value of stock using both Earnings and Net Assets.
Thus its a better tool than just looking at one ratio.
So, values are lower means share is better.
Some popular shares
Tile = 5.7
AEL = 9.0
I just invented this. But definitely this may be used by analysts with other names...