单词 | price to book (PB) ratio |
释义 | price to book (PB) ratioDefinition Used by the security analysts to determine whether the stock is undervalued (therefore its price is expected to rise in the future) or overvalued (it is a popular growth stock). Also called market to book ratio, it is applied to firms that have lots of fixed assets. Formula: Market value of outstanding stock ÷ Book value of assets. |
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