Glossary

What is Price-to-book ratio (PBV)?

Company finances

Share price divided by book value per share (equity per share). Below 1 means the market values the company below its accounting value.

Think of it like: Paying more or less for a shop than its stock and cash are worth on paper.
Real example: A share at $20 with book value $10 has a price-to-book of 2.
60-second lesson

Related words

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