INTELLECTUAL CAPITAL AT ELI LILLY AND SAFEWAY1Eli Lilly & Co. discovers, develops, manufactures and sells pharmaceutical products, with its largest category of products in the neurosciences group. Lilly also has an animal health business segment. Safeway Inc. is one of the largest food and drug retailers in North America, with 1,694 stores at year-end 2010. The company has an extensive network of distribution, manufacturing and food-processing facilities that support its retail operations. Many investors look for financial indicators other than earnings growth. One of the metrics they look for is the price-to-book ratio. This measurement looks at the value the market places on the net book value of the company. A lower price-to-book ratio could mean that the company’s stock is undervalued. However, it could also mean that something is fundamentally wrong with the company or that other phenomena are affecting the metric.
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