The price-to-book (P/B) ratio is a simple way of gauging whether a company's shares are underpriced or overpriced.
It is calculated by dividing the current closing price of a company's share by its book value per share in the latest quarter.
Watch this video to learn what the P/B ratio is and how to use it in your stock trading strategies.
For more in-depth information, read the lesson the video is based on:
You can also discuss this topic in our forum: