Alex Trias

Some Graham and Dodd Type Thoughts on Stocks vs. Bonds

Interesting article, although I'd be nervous about relying on the TIP vs. stock analogy. As at least one commentator pointed out, stocks are riskier than Treasuries, so there is a potential apples to oranges comparison problem you have. Second, you haven't accounted for corporate growth rates. Investing in a company because it has a low price to book ratio is all fine and good - provided the shareholder equity is growing, rather than shrinking, over time.
Third, dividends can change based on corporate policy - companies might opt to scrap dividends for buybacks, for instance - sometimes for reasons having nothing to do whatever with corporate earnings. If you want to value a company, you might want to at least take corporate earnings into account somewhere in your equation.