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Price/book ratio

• Compares a stock's market value to the value of total assets less total liabilities (book value). Determined by dividing current stock price by common stockholder equity per share (book value), adjusted for stock splits. Also called Market-to-Book.

 
 

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 Embedded terms in definition
 Assets
Book value
Common stock
Equity
Liabilities
Market value
Market
Share
Stock split
Stockholder equity
Stockholder
Stock
Total assets
 
 Related Terms
 

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