Price/Book Ratio
Barron's Finance & Investment Dictionary:
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Price/Book Ratio
ratio of a stock’s price to its book value per share. This number is used by securities analysts and money managers to judge whether a stock is undervalued or overvalued. A stock selling at a high price/book ratio, such as 3 or higher, may represent a popular growth stock with minimal book value. A stock selling below its book value may attract value-oriented investors who think that the company’s management may undertake steps, such as selling assets or restructuring the company, to unlock the hidden value on the company’s Balance Sheet.
| Price-Weighted Index, Price-To-Cash Flow Ratio | |
| Price/Earnings Ratio (p/e), Price/Sales Ratio |
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Price/Book Ratio
Barron's Business Dictionary:
Top
Price/Book Ratio
Ratio of a stock’s price to its book value per share. This number is used by securities analysts and money managers to judge whether a stock is undervalued or overvalued. A stock selling at a high price/book ratio, such as 3 or higher, may represent a popular growth stock with minimal book value. A stock selling below its book value may attract value-oriented investors.
| Price-Fixing, Price-Earnings (P/E) Ratio, Price War | |
| Pricey, Pricing Above (BELOW) The Market, Prima Facie |
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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