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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: StevnFool ✶  😊 😞
Number: of 15062 
Subject: Re: Price to Book has been a quick, sim...
Date: 01/03/2023 6:23 PM
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IMO, inflation adjustment is done for all purposes. Yes, it's used for generating the trend line, but looking at the real, inflation-adjusted stock price is also appropriate. Stock indexes on average increase by 6.5% (Siegel's constant) plus inflation. Eventually, when you sell your Berkshire stock, you spend that money on higher (inflation-adjusted) prices. So at the end of the day, the inflation-adjusted stock price is what really matters.

I guess to make my point another way. If you simply want to calculate P/B, you get the same answer if you inflation adjust both or neither so neither is easier but you definitely do not want to inflation adjust only one of them.
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