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Q » Define price-to-book (P/B) ratio.
06 Dec, 2025
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A » The price-to-book (P/B) ratio is a financial metric that compares a company's market value, represented by its stock price, to its book value, which is derived from its balance sheet. It is calculated by dividing the company's current share price by its book value per share. This ratio helps investors determine if a stock is undervalued or overvalued relative to its net asset value, guiding investment decisions.
06 Dec, 2025
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