Price-book ratio

Price-book ratio

Compares a stock's market value to the value of total assets less total liabilities (book value). Determined by dividing current stock price by common stockholder equity per share (book value), adjusted for stock splits. Also called Market-to-Book.

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 ?
Except Price-Book ratio, all other parameters in VAR equation (Table 2) are significant.
The momentum traders increase their long positions till the second month, with any shock in Price-Book ratio.
We also include "Momentum" (one-year raw stock returns), one-year revenue growth, and the price-book ratio as indicators of high growth or "glamour stocks.
However, we find only modest evidence that revenue growth is positively related to analyst following, no evidence that price-book ratio is related to analyst following, and additional evidence that share price momentum is negatively related to analyst coverage.
Insiders indicated that leading financial institutions usually see the price-book ratio of their stocks post twice that the projected prices.
Equity securities of large cap companies that have low forecasted price--earnings ratios, low price-book ratios and high dividend yields.