How is the P/B ratio used in stock analysis?
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Khalid
Professional Stocks and Forex trader with 4 years of experience.
The Price-to-Book (P/B) ratio is used to assess a company's stock value by comparing its market price to its book value (total assets minus intangible assets and liabilities). It helps investors gauge whether a stock is undervalued or overvalued in relation to its assets.
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