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Relation between book value of shares or capitalization

Is the relation in between book value of shares or capitalization a good guide to investments?

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This is, in general. In the Fernández and Bermejo (2008, in table) is illustrated which portfolios formed at the starting of each year in the Spanish stock market, as per to the relationship capitalization/book value, were considerably more profitable than the IBEX 35 and the whole index of the Madrid Stock Exchange.

Table:

150_Book P is the inverted Capitalization Book Value.png

Book/P is the inverted Capitalization/Book Value

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