answersLogoWhite

0

It should not be more than 1.5. If book value is more than price then margin of safety is there. The share price can be higher than book value but not more than 1.5.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

What is a good price to book ratio for investing in a company?

A good price to book ratio for investing in a company is typically considered to be below 1.5. This ratio compares a company's market value to its book value, with a lower ratio indicating that the company may be undervalued.


What is the ideal ratio of all accounting ratio?

There is no single ideal ratio.


What is considered a good price-to-book ratio for a company?

A good price-to-book ratio for a company is typically considered to be below 1.0. This indicates that the company's stock price is lower than its book value, which may suggest that the stock is undervalued.


What is a good price to book ratio for evaluating a company's stock?

A good price to book ratio for evaluating a company's stock is typically between 1 and 3. This ratio compares the stock price to the company's book value per share, providing insight into whether the stock is undervalued or overvalued.


What is a good price/book ratio and how can it be used to evaluate the value of a company's stock?

The price-to-book ratio compares a company's stock price to its book value per share. A lower ratio may indicate that the stock is undervalued, while a higher ratio may suggest it is overvalued. Investors can use this ratio to assess if a stock is a good investment based on its perceived value relative to the company's assets.


Why do you use Price-to-book value ratio for analyzing a bank?

Its fun.


What is a stock multiple?

A stock multiple is the ratio of a stock's price to various other financial measures. Most commonly used are price-to-book, which is the total value of a company's stock vs. its book value, and price-to-earnings or PE ratio.


What is a good price-to-book ratio and how can it be used to evaluate a company's financial health?

A good price-to-book ratio is typically considered to be below 1. It can be used to evaluate a company's financial health by comparing the market value of a company's stock to its book value, which is the value of its assets minus its liabilities. A low price-to-book ratio may indicate that a company's stock is undervalued, while a high ratio may suggest that the stock is overvalued.


How do you calculate the transformer turns ratio?

For an ideal transformer, the voltage ratio is the same as its turns ratio.


What does a negative price-to-book ratio indicate about a company's financial health?

A negative price-to-book ratio indicates that the company's stock is trading below its book value per share. This could suggest that the market has a negative perception of the company's financial health or future prospects.


What is market price per share divided by book value per share?

market/book ratio (M/B)


What is the ideal aspect ratio for a 16x20 print?

The ideal aspect ratio for a 16x20 print is 4:5.