CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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What is P/B Ratio?

P/B ratio

It's shorthand for price-to-book ratio. Analysts use it to compare a stock's market value and its book value. P/B Ratio tells equity investors how much they're paying for each dollar in net assets.

Where have you heard about P/B Ratio?

Whenever investors are looking for the next big investment opportunity; the P/B Ratio can tell you if the price of a stock today represents good value compared with other stocks in the same industry.

What you need to know about P/B Ratio.

Even though many investors prefer price-to-earnings and price-to-sales when weighing up whether to invest, P/B helps them identify low-priced stocks that might have high-growth potential in the future. It's worked out by dividing the current closing price of a stock by the latest quarter's book value per share. A P/B Ratio of less than one means the stock is trading at less than its book value - in other words it is under-priced. If the ratio is more than one, many investors consider the stock to be overpriced.

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