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How to determine Price to Book Ratio
The price-to-book ratio (P/B ratio, or market-to-book ratio) measures a company's market value relative to its book value. There are two ways to calculate the price-to-book ratio: Price-to-book Ratio = (Stock Price) / (Book Value Per Share) Price-to-book Ratio= (Market Capitalization) / (Book Value) The "book value" most frequently used to ...
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