Among the valuation metrics, price-to-earnings (P/E) and price-to-sales (P/S) are more commonly used for stock selection. This is because calculations based on earnings and, to some extent, sales are ...

It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. P/B ratio = market capitalization/book value of equity There are several ways by ...

It compares how much a company is worth on the stock market to its actual “book value,” which is essentially its total assets minus its debts. Think of it as a price tag: the P/B ratio tells ...

Price is the company's stock price and book refers to the company's book value per share. A company's book value is equal to its assets minus its liabilities (asset and liability numbers are found ...

ETFs holding stocks with “wonderful prices” focus solely on price, or price multiples. Common metrics like price/book value, price/sales, and price/earnings are an imprecise shortcut for a ...