Book value is simply what's left on a company's own balance sheet after subtracting every liability from every asset — the accounting version of shareholders' equity. Price-to-book (P/B) compares a company's market price to that number: market capitalization divided by book value, or share price divided by book value per share. For some industries, that comparison is genuinely central to how professionals value the…
You have read your 2 free lessons. Making an account is free and gives you 2 more straight away — plus your progress, streak and quiz scores saved as you go.
Learning through your school? Join your class — school students get everything, at no personal cost.