Definition: Market to Book Ratio (or price book ratio, P/B) is used to measure a company's market price in relation to its book value.
Formula:
Market to Book Ratio = Market Price Per Share / Book Value Per Share
Or,
Market/book ratio = Market price per stock / Net asset value per stock
Or,
P/B ratio = Market capitalization / Book value of equity
(Note: Book Value Per Share = Book Value for
Subscribe to:
Post Comments (Atom)
Popular Posts
Powered by Blogger.
No comments:
Post a Comment