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Price-to-Book (P/B) Ratio Explained: Formula, Examples, and Why It Matters for Investors
In the world of investing, numbers tell stories. Among these numbers, the price-to-book ratio, often shortened as P/B ratio, stands out as a tool investors use to judge whether a company is being traded at a fair price in relation to what it owns. By comparing a firm’s market value to its book value, this…