What is the formula for evaluating PBR(Price to Book value Ratio)?
You have it as PBR (Price to Book value ratio) mostly seen and used as Price-To-Book-Ratio (P/B ratio). A ratio used to compare a stock’s market value to its book value. It is also known as “Price-Equity Ratio”. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share. ******************************** Stock Price ******************** P/B ratio = ____________________________________ ***************Total Assets – Intangible Assets and Liabilities* A lower P/B ratio could mean that the stock is undervalued. However, it could also mean that something is fundamentally wrong with the company. As with most ratios, be aware that this varies by industry. This ratio also gives some idea of whether you’re paying too much for what would be left if the company went bankrupt immediately. This formula can be located at the below URL: http://www.investopedia.com/t
