The lower a company's price-to-book ratio is, the better a value it generally is. This can be especially true if a stock's book value is less than one, meaning that it trades for less than the value ...
A low price relative to book value used to signal a bargain. Nowadays it provides only a hint of value. Divide a company’s market capitalization by its shareholders’ equity and you get the price to ...
The price-to-book (P/B) ratio is widely favored by value investors for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book ...