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 ...

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 ...

Market value of equity is calculated by multiplying stock price by outstanding shares. Book value, derived from balance sheet equity, offers a less volatile valuation. Market values may include ...

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 ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Khadija ...