MarketLearn
Chapter 20Intermediate~18 min total

The P/B Ratio

Price compared with accounting net worth

The price-to-book ratio compares the market price of a share with the accounting net worth behind it. Useful for some businesses, misleading for others.

Lessons

  1. 1Price versus book valueIntermediateBook value per share, and what P/B compares.~9 min
  2. 2When P/B is usefulIntermediateAsset-heavy businesses such as banks — and where P/B breaks down.~9 min
Course positionChapter 20 of 35