Price-to-Book

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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 ?
All other means are insignificantly different with the exception of the price-to-book value ratio in Panel B, which is higher for the heavy group.
Panel A indicates that firms in the lowest quartile according the price-to-book value ratio repurchased an average of 0.98% of their assets, while firms in the highest quartile repurchased an average of 1.94%.
Equation 1 displays these variables as dividend distribution, price-to-book value ratio, total debt, net income, and total assets.
"Price-earnings ratios and price-to-book value ratios have been converging for years as well," observes Ketterer.
On the other hand, the rates of earnings growth for the top life insurers' outpace those of banks by two to one, and insurers' and banks' price-to-earnings ratios and price-to-book value ratios are broadly similar.
The median price-to-book value ratios have already declined to 1.02 times with some bank stocks already trading at below their book values.