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 ...

Investing in stocks based on valuation metrics is considered a smart strategy. The price-to-earnings (P/E) ratio is often the go-to metric due to its simplicity and ease of use. However, the ...

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 ...