Price-to-Book Ratio: Formula, Below 1, and ROE Explained

The price-to-book ratio, or P/B ratio, compares a company’s share price with its book value per share. A P/B of 0.7 means the stock trades at 70% of the reported book value attributable to each share under the data provider’s calculation. A P/B below 1 does not prove that a stock is undervalued. Book value … Read more