Financial dictionary


Term Definition
P/B (price-to-book ratio)

The P/B (price-to-book ratio) is a financial metric that compares a company's market price per share with its book value per share. This ratio is calculated by dividing the market price of a single share by the book value of one share (the company's equity divided by the number of outstanding shares). The P/B ratio is used to assess whether a stock is undervalued or overvalued relative to the company's book value. A lower P/B may indicate that the stock is undervalued or that the company is facing issues, while a higher P/B could suggest overvaluation or expectations of higher growth.

Performance of a fund
Prime yield
Private equity
Property manažer
Prospectus
Publicly traded company
  • P/B (price-to-book ratio)

    The P/B (price-to-book ratio) is a financial metric that compares a company's market price per share with its book value per share. This ratio is calculated by dividing the market price of a single share by the book value of one share (the company's equity divided by the number of outstanding shares). The P/B ratio is used to assess whether a stock is undervalued or overvalued relative to the company's book value. A lower P/B may indicate that the stock is undervalued or that the company is facing issues, while a higher P/B could suggest overvaluation or expectations of higher growth.

  • Performance of a fund
  • Prime yield
  • Private equity
  • Property manažer
  • Prospectus
  • Publicly traded company