Price to Book Ratio

/Price to Book Ratio

Price to Book Ratio

  • Compares market price of stock relative to book value
  • Limited valuation measure that does not take into account several other possible valuation factors: appreciation of book value assets, market environment, income growth
  • A value > 1.0x indicates favorable investor sentiment, a value < 1.0 indicates the opposite

Price-Book_Value_Ratio

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By | 2018-01-22T10:23:39+00:00 August 29th, 2015|0 Comments

About the Author:

John Gillingham is a CPA and Accounting App Developer in San Francisco, California. Check the iOS App Store for Accounting Flashcards and the Debits & Credits Game. On Android: Learn Accounting Flashcards. Also on Kindle and iBooks.

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