Company Health
What is Price-to-Book (P/B)?
Stock price vs. the company's net assets
Full Explanation
P/B ratio compares a company's market value to its book value (assets minus liabilities). A P/B under 1 means you're buying assets for less than their accounting value — potentially a bargain or a value trap.
Pro Tip
Most useful for banks and asset-heavy industries. Less meaningful for software companies.
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