# Price to Book Ratio (P/B)

A valuation ratio comparing stock price to book value per share. Calculated as Market Price per Share divided by Book Value per Share. A P/B below 1 may indi...

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A valuation ratio comparing stock price to book value per share. Calculated as Market Price per Share divided by Book Value per Share. A P/B below 1 may indicate an undervalued stock, while higher ratios suggest the market expects future growth. Particularly useful for financial sector companies.