B

Glossary

Price-to-Book

Also: P/B

Important — standard screening

What it measures

Price relative to net asset value. Below 1 = trading below book value.

Formula

Market Cap / Shareholders Equity

Benchmark

< 1 = trading below book · > 3 = premium

Related metrics

BVPSROEShareholders Equity

Source

Graham & Dodd, Security Analysis (1934)

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Price-to-Earnings Ratio