What is PRICE TO BOOK (PB) RATIO?

Undervalued and Overvalued stocks are determined by stock analysts by using the price to book ratio. Firms that have a significant proportion of fixed assets are also valued using the PB ratio. It is determined by multiplying the book value of the assets and the market value of outstanding stock.

More On This Topic



Link to This Definition
Did you find this definition of PRICE TO BOOK (PB) RATIO helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary