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Price to Book ratio (P/B)
Price-to-book ratio (P/B) is an indicator that is calculated by dividing the last price of share with last book value of company. Last book value is computed on the basis of last financial reports.
A lower value of P/B can indicate that share is undervalued. But it may also mean that something is not good with the company. When the market values are considerably higher than book values, we can say that the market is overpriced and that there may occur declining of prices.