Price to Book Ratio

The price to book ratio measures a company’s market price in relation to its book value.

This ratio gives value investors an idea of whether they are paying too much for what would be left if the company filed for bankruptcy.

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For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.