What is the definition of P / BV?
- Posted on November 20, 2019
- Financial Terms
- By admin admin
Price to Book Value (P / BV) is a financial ratio used to assess the relative price of a stock compared to the book value per share. Essentially, it tells you how much you have to pay in order to get access to 1 share worth of book value. P / BV is used as a measure of whether a stock is intrinsically over or undervalued because it reflects the value of the company were it to be liquidated (i.e. book value).
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