Price-to-Book

(redirected from Price to Book Ratios)

Price-to-Book

A ratio of the share price of a publicly-traded company to its book value per share, which is the company's total asset value less the value of its liabilities. The P/B is a ratio of investor sentiment on the value of a stock to its actual value according to the Generally Accepted Accounting Principles. A high P/B means either that investors have overvalued the company, or that its accountants have undervalued it.
References in periodicals archive ?
Under Cullen's investment strategy, the portfolio manager seeks out mid-sized and large cap companies that possess three key elements: attractively low valuations evidenced by low price to earnings ratios and low price to book ratios, dividend yields which are greater than the S&P 500 as this has historically served to offer downside protection, and lower than average dividend payout rates that are growing.
Buying stocks with low price to earnings ratios, low price to book ratios and high dividend yields is a key to the Fund's five-star rating," says Cullen.