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What does price-to-book value ratio mean?

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price-to-book value ratio
(PBR; P/B)
Noun


The equity ratio used to compare the net assets available to a company’s common shareholders relative to the per share market price of its stock, where the formula is the stock price per share divided by the book value per share.

Synonym(s): 
  • P/B ratio; market-to-book ratio; price to book ratio.
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