So, if the share price is $10 and the book value of equity is $5, investors are ready to pay two times the book value. The P/B ratio helps identify low-priced stocks with ... You can see the complete ...

However, the price-to-book ratio (P/B ratio), though used less often, is also an easy-to-use valuation tool for identifying low-priced stocks ... based on its current share price relative to ...