หมวดคำศัพท์

Price-to-Book (P/B)

A financial ratio calculated as current share price divided by book value per share. It compares how the market values a company to the value on the company’s books. For example a company trading at several times its book value tends to indicate a growth stock where investors believe the book value will rise in the future. Typically a company with a low P/B means that investors think that the firm´s assets have been too highly valued on its financial statements.