When investors seek to value a company by comparing its stock price to its shareholders’ equity, they turn to the price-to-book ratio. Price-to-book ratio is a metric that values a company based on ...

Calculate P/B ratio by dividing stock price by book value per share. A lower P/B may signal an undervalued stock, but verify with other metrics. Use P/B for tangible asset companies; it’s less valid ...

Book value is an accounting measure of the net value of a company. It’s used to calculate the valuation of a company based on its assets and liabilities. If owners or executives sought to make a quick ...

The book value of a company is the difference between that company's total assets and its total liabilities, as shown on the company's balance sheet. Book value represents the carrying value of assets ...

A market price per share of common stock is the amount of money investors are willing to pay for each share. The price of shares rises and falls in response to investor demand. The obvious fact is ...

When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just ...

When you buy stock in a company, you’re buying an equity stake. The value of that equity stake will change over time: growing and shrinking in tandem with company performance. Much of this is ...

Discover what salvage value means, how it's calculated, and see examples of its role in depreciation schedules to better manage your financial assets.