The price-to-book ratio is a metric that analyzes a company's shares against its balance sheet — to see if the stock is over- or undervalued.The price-to-book ratio measures a stock price against a company's book value — its fundamental worth.
But how do you tell? One method is to look at a company's price-to-book ratio — or P/B ratio for short. It's a quick metric that evaluates the market price of a stock and can be used to compare it to others in a similar space. The P/B ratio may signal whether the per-share price is reasonable, lower than it should be, or if it's pie-in-the-sky high.The price-to-book ratio expresses a company's stock share price in relation to its book value per share .
Now, finally, you can determine the book value per share. That's also simple math: Divide the book value from Step 1 into the number of outstanding shares on a particular date .Divide the share price by the BVPS. Voilà! There's your P/B ratio. Some analysts say a P/B ratio of less than 1 indicates that a stock is undervalued and, everything else being equal, it may be poised for a rise.
That's one reason the P/B ratio is a tool to be used in conjunction with others — "one of many indicators of relative valuation," according to Solomon Tadesse, who heads North American equity quantitative research at Société GénéraleExample of the price-to-book ratio
thanks for this news
ประเทศไทย ข่าวล่าสุด, ประเทศไทย หัวข้อข่าว
Similar News:คุณยังสามารถอ่านข่าวที่คล้ายกันนี้ซึ่งเรารวบรวมจากแหล่งข่าวอื่น ๆ ได้
Stock investing strategy, new PE ratio for a unique market: Leuthold - Business InsiderA Wall Street firm tweaked the Shiller PE ratio to create a superior gauge of the strongest stock-market returns — and broke down why the beloved metric won't cut it anymore Judgment begins in the United States. There was an American prophecy. It should be distinguished from all sins into a holy life. Repent. Please listen to this broadcast. 회개와거룩함사역회 MegaWednesdayExpo
แหล่ง: BusinessInsider - 🏆 729. / 51 อ่านเพิ่มเติม »
Small-cap stocks: Definition, examples, and evaluation - Business InsiderBusiness Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. good
แหล่ง: BusinessInsider - 🏆 729. / 51 อ่านเพิ่มเติม »