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Price-to-Book Ratio


Price-to-Book Ratio (P/B) (market-to-book ratio) shows the ratio of a company's stock market price to its book value per share. P/B is calculated using the following formula:

$$P/B = \frac{Stock\; Market\; Price}{Book\; Value\; per\; Share}$$


This ratio is often used to compare banks and financial institutions.


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