The Globe and Mail attempts to identify value stocks with low price-to-book ratios in the Canadian energy sector in its Thursday, Feb. 26, edition. The Globe's Ian Tam writes in the Number Cruncher column that book value measures what the theoretical value of a company's equity should be if the company is liquidated. The price-to-book ratio is a value metric that investors can use to show whether a company is overvalued or undervalued relative to peers. Mr. Tam searched for company with the best possible combination of the following factors: price to book; industry relative price to book (the relationship between a company's price-to-book ratio and the price-to-book ratio of the industry group); quarterly earnings momentum (the latest four quarters of earnings, compared with the same number one quarter ago); market cap (larger market cap companies were favoured); only companies in the energy sector were considered. Canadian energy companies with low price-to-book ratios are EnCana, MEG Energy, Tourmaline Oil, Trican Well Service, Cardinal Energy, Calfrac Well Services, Canadian Natural Resources, Painted Pony Petroleum, Crescent Point Energy and Strad Energy Services.