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.
Nearby TermsPrice uncertainty Price value of a basis point (PVBP) Price-book ratio Priced out Price-earnings ratio
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University