How Do You Find The Market-To-Book Ratio?
The market-to-book ratio is a financial ratio which measures market value. The market-to-book ratio is the market value per share per dollar of book value per share. The formula to find the market-to-book ratio is: market-to-book ratio = market value per share/book value per share in expanded form: market-to-book ratio = market value per share/(total equity/number of shares outstanding) This article demonstrates through example how to find the market-to-book ratio. Information gathered from Yahoo Finance about Dell on 2/12/2010 is used. A link to Yahoo Finance is located below. Gather the information needed to find the market-to-book ratio. The ticker symbol for Dell is DELL. Total equity can be found on the balance sheet. Key statistics contains other information. market value per share = $13.84 total equity = 4,271,000,000 number of shares outstanding = 1.96B Plug the information into the market-to-book ratio. market-to-book ratio = market value per share/(total equity/number of shar
