what is P/B ratio?
2 Answer(s)
sanchita.das
A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.
Also known as the "price-equity ratio".
Calculated as:
P/B Ratio = (Stock Price/(Total Asset-Intangible Assets and Liabilities))
Feb 23 2014 09:58 PM
Also known as the "price-equity ratio".
Calculated as:
P/B Ratio = (Stock Price/(Total Asset-Intangible Assets and Liabilities))
KUSHAL
Adding on to the discussion trail.
If P/B is less than one, it normally tells investors that either the market believes the asset value is overstated, or the company is faring very badly in terms of returns on its assets.
Mar 24 2014 01:15 PM
If P/B is less than one, it normally tells investors that either the market believes the asset value is overstated, or the company is faring very badly in terms of returns on its assets.