Market debt ratio= TL / (TL - Equity)
Note : equity with market value .
market/book ratio (M/B)
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.
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.
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.
The primary reason for a company's book value being less than its market value is usually due to factors such as market expectations, future growth potential, brand value, and intangible assets not reflected in the book value.
market/book ratio (M/B)
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.
Book Value of Shares divided by paidup Valur of Shares.
what is market to book ratios used for?
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.
The PBV is a financial ratio that is used to compare a company's book value to its current market price. Book value denotes the portion of the company held by shareholders.Formula:PBV = Market Capitalization / Total Book Value as per the Balance SheetOrPBV = Market Value per Share / Book Value per ShareBook Value per Share = Total Book Value / Total No. of outstanding sharesA point to note here is that, PBV ratios do not directly provide us any information on the company's ability to generate profits for itself or its shareholders. It gives us some idea of whether an investor is paying too much for what would be left if the company were to go bankrupt immediately.
Salvage Value - [Tax * (Market Value - Book Value)
and total debt of $370 billikon. Four years later, in early 2009, GE had a book value of equity of $105 billion, 10.5 billion shares outstanding with a market price of $10.80 per share, cash of $48 billion, and total debt of $524 billion. Over this period, what was the change in GE's a. market capitalization? b. market-to-book ratio? c. book debt-equity ratio? d. market debt-equity ratio? e. Enterprise value?
Book value is an estimate of what an item could or should sell for, market value is what people will pay.
Book value is an estimate of what an item could or should sell for, market value is what people will pay.
total equity/# of shares outstanding
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.