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The price-to-book ratio, or P/B ratio, (also PBR) is a financial ratio used to compare a company's current market value to its book value (where book value is the value of all assets minus liabilities owned by a company). The calculation can be performed in two ways, but the result should be the same.
The price-to-book ratio (P/B) is a commonly used benchmark comparing market value to the accounting book value of the firm's assets. The price/sales ratio and EV/sales ratios measure value relative to sales. These multiples must be used with caution as both sales and book values are less likely to be value drivers than earnings.
When analyzing stocks or companies to invest in, there are different ratios for gauging financial health. The price-to-book ratio (P/B) is one way to evaluate a stock's value, something that may ...
P/B ratio is emerging as a convenient tool to identify low-priced stocks that have high-growth prospects. Skip to main content. News. 24/7 Help. For premium support please call: 800-290 ...
With a market cap of about $990 billion, most investors are already very familiar with Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). ... Its price-to-book ratio, for instance, is near multi-year ...
Simple example If an investor owns 10 shares of a stock purchased for $4 per share, and that stock now trades at $6, the "mark-to-market" value of the shares is equal to (10 shares * $6), or $60, whereas the book value might (depending on the accounting principles used) equal only $40.
P/B ratio is emerging as a convenient tool for identifying low-priced stocks that have high growth prospects. Skip to main content. 24/7 Help. For premium support please call: 800-290-4726 ...
When making comparisons, the P/E ratio can give you a refined view of a particular stock valuation. For investors paying for each dollar of a company's earnings, the P/E ratio is a significant indicator, but the price-to-book ratio (P/B) is also a reliable indication of how much investors are willing to spend on each dollar of company assets ...