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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.
PHOTO: BLOOMBERG
(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.
