Price To Book Value Ratio: What It Is And How To Use It
Price to book value is a ratio used to compare a company’s current market price to its book value. Book value is an accounting term that refers to the value of a company’s assets minus its liabilities.
Investors use the price to book value ratio to find companies that may be undervalued by the market. A low price to book value ratio may indicate that a company is undervalued and could be a good investment.