Is the P/B Ratio Still Relevant in the Modern Day?

165 Views09 Oct 2022 22:02
  • When most people think about the P/B ratio’s role in business valuation, they tend to interpret it through the lens of a direct relationship between a company’s share price and book value.

  • This means that they will try and find out if a company’s historical share price is correlated to its book value - in order to determine if the P/B ratio is a useful approach towards performing stock valuation on that stock.

  • There are many reasons why this can actually be a useful exercise.

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  • Is the P/B Ratio Still Relevant in the Modern Day?
    09 Oct 2022