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Using the Price-to-Book Ratio to Analyze Stocks

By John Bromels – Updated Oct 8, 2024 at 10:55AM

Key Points

  • Calculate P/B ratio by dividing stock price by book value per share.
  • A lower P/B may signal an undervalued stock, but verify with other metrics.
  • Use P/B for tangible asset companies; it’s less valid for tech firms with intangibles.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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