Price-to-book ratio (P/B)

The video player is loading...

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:

Learn how the price to book ratio is used to gauge whether a company's shares are under or overpriced.
You haven't attempted the quiz yet.

You can also discuss this topic in our forum:

Tags: Stocks

Register Now - It's free!

By clicking on the "Get instant access" button, you agree that you have read, understood, and accepted the Terms & Conditions.