PRICE TO BOOK (PB) RATIO
\pɹˈa͡ɪs tuː bˈʊk pˌiːbˈiː ɹˈe͡ɪʃɪˌə͡ʊ], \pɹˈaɪs tuː bˈʊk pˌiːbˈiː ɹˈeɪʃɪˌəʊ], \p_ɹ_ˈaɪ_s t_uː b_ˈʊ_k__ p_ˌiː_b_ˈiː__ ɹ_ˈeɪ_ʃ_ɪ__ˌəʊ]\
Sort: Oldest first
-
Undervalued and Overvalued stocks are determined by stock analysts by using the price to book ratio. Firms that have a significant proportion of fixed assets are also valued using the PB ratio. It is determined by multiplying the book value of the assets and the market value of outstanding stock.
By Henry Campbell Black
Word of the day
dust storm
- a windstorm that lifts up clouds of dust or sand a windstorm that lifts up clouds dust or sand; "it was the kind of duster not experienced in years"