Price-book ratio

Definition:

Compares a stock's market value to the value of total assets less total liabilities (book value). Determined by dividing current stock price by common stockholder equity per share (book value), adjusted for stock splits. Also called Market-to-Book.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Property, Plant and Equipment (PP&E)

Tangible, long-lived assets that a company owns and uses in its operations, rather than simply holding them as an investment. This includes buildings, construction, facilities, machinery etc. and is... Read More

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