The price-to-book (P/B) ratio is a financial metric that compares a company's market value to its book value, indicating how much investors are willing to pay for each dollar of net assets. A high P/B ratio suggests that investors expect high growth or profitability, while a low P/B ratio may indicate that the stock is undervalued or the company is facing difficulties. This ratio is particularly useful in assessing profitability and market value as it provides insight into how the market perceives a company's asset base.
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