only if you like what book value represents for any given company. One common misperception is that the price / BV is an absolute indicator of value, since BV doesn't change, only price. but that is not always the case.
each industry and / or company can have its own nuances as to what is on its Balance Sheet. It's a start, its only one ratio and other should be used as well. Usually I find true "breakup value" to be something that is not on the books, also there's of B/S pension and health benes and market value of depreciated assets that may have true value as well as highly appreciated land value not written up on the books. If you want my honest opinion the ratio is somewhat worthless, but hey maybe it can be one tool in your chest.
for example, if BV is 90% intangibles from a company that made a lot of acquisitions over time, those can be written off at any given quarter by taking an impairment charge. then your ratio just went poof! For banks and finance companies, i would not recommend this at all, you could get burned big time. banks are not like any other companies so beware.
Other industries that have long contract based businesses, or even companies that for some reason have huge deferred taxes etc on their books. What are these, will they be realized or expire, etc. Overall, Price to Tangible BV is a better ratio IMHO.
Another ratio of value I like to use is Enterprise Value to EBITDA (or EBITDA-CAPEX). Enterprise Value being Market Cap + Total Debt - Cash / EBITDA (Operating Income on the Income Statement+ Depreciation and Amort taken from the cash flow statement). Obviously for this one you would want to look at the ratio on a trailing twelve month basis (for EBITDA) as well as 2009 and 2010 projected EBITDA by analysts you think are good, and maybe even apply a haircut to that. any ratio below 7 on a projected basis is a really good buy, unless of course the projections haven't been updated or can get slashed as we go.
There's no sure fire way, you have to make you own handicap sheet with various ratios, look at the fundamentals and place your best risk reward bets.