Corporate Valuation: Price to Book Ratio and ROE
interactive

Corporate Valuation: Price to Book Ratio and ROE

Updated Jul 22, 2024

What you'll learn

  • Here we show you how to calculate P/BV using the dividend discount model formula and how to interpret the result.
Course Description

Price to book value (P/BV) compares the price of a stock to the book value per share. A fundamental P/BV higher than the current P/BV is likely to indicate a buy (and lower a sell). Here we show you how to calculate P/BV using the dividend discount model formula and how to interpret the result.