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 ...

How Do You Calculate Price-to-Book Ratio? Price-to-Book Ratio = Market Capitalization / Book Value of Equity Calculating the ratio may involve a few steps, depending on the availability of ...

You can calculate the price-to-book, or P/B, ratio by dividing a company's stock price by its book value per share, which is defined as its total assets minus any liabilities. This can be useful ...

Book value is a measure of the current worth of a company that doesn’t factor in future growth. It is a figure of what the company is worth if they sold all of its assets and paid its debts.

Market Value per Share The current market price or market value per share of common stock is always the last price at which shares were sold. Strictly speaking, market prices aren't calculated.

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In simple terms, the lower the stock price relative to a company’s assets minus its liabilities, or “book” value, the cheaper it is. For many investors, P/B became synonymous with value.