P/B ratio
Price-to-Book Ratio
Valuation RatiosCompares a stock's market value to its book value. Shows how much investors are paying for the net assets of a company.
Formula
P/B = Market Price per Share / Book Value per Share
Why it matters
P/B below 1 may indicate undervaluation (or problems). Banks and asset-heavy companies are often valued on book value.
Indian example
Related terms
Learn the concept
Market ratios →From the research
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