Price-to-Book Ratio = Market Capitalization / Book Value of Equity The fundamental way to calculate price-to-book ratio is to divide market capitalization by book value. Calculating on a per-share ...

A company's price-to-book ratio can indicate whether the current stock price is overvalued or undervalued compared to others in the same sector.

Simply put, the market value of a firm divided by capital invested. Market to Book Ratio seeks to show the value of a company, by comparing the book value and market value. Book value is ...

One of the most important ratios, according to Kaplan, is this one that compares the current total market capitalization of a company with its book value. You can also calculate it by dividing a ...

Understanding P/B Ratio By comparing the book value of equity to its market price, we get an idea of whether a company is under or overpriced. However, like P/E or P/S ratio, it is always better ...

For example, If a company has a market price of ₹60 per share, a total book value of ₹20 crore ... existing positive expectations would find the P/B ratio lower than three indicates strong ...