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 Terms Beginning with P

# Price to Tangible Book Ratio PTB

Fundamental Analysis Term

Price to Tangible Book Ratio (PTB) is a financial ratio that compares a company's market value per share to its tangible book value per share. The PTB ratio is often used in Fundamental Analysis to determine whether a company's stock is undervalued or overvalued.

Tangible book value refers to a company's book value minus any intangible assets, such as patents or goodwill. The PTB ratio helps to determine the value of a company's tangible assets. A low PTB ratio may indicate that investors can purchase shares of the company at a discount compared to its tangible assets, suggesting that the stock is undervalued. On the other hand, a high PTB ratio may indicate that the stock is overvalued compared to its tangible assets.

The formula to calculate PTB ratio is:

PTB ratio = Market price per share / Tangible book value per share

The market price per share is the current stock price of the company in the market. The tangible book value per share is the company's book value minus any intangible assets, divided by the number of shares outstanding.

The PTB ratio is just one of many financial ratios that investors can use to evaluate a company's stock. It is important to consider other factors such as earnings, dividends, debt, and cash flows in addition to the PTB ratio when making investment decisions.

# Price to Tangible Book Ratio PTB

Fundamental Analysis Term

Price to Tangible Book Ratio (PTB) is a financial ratio that compares a company's market value per share to its tangible book value per share. The PTB ratio is often used in Fundamental Analysis to determine whether a company's stock is undervalued or overvalued.

Tangible book value refers to a company's book value minus any intangible assets, such as patents or goodwill. The PTB ratio helps to determine the value of a company's tangible assets. A low PTB ratio may indicate that investors can purchase shares of the company at a discount compared to its tangible assets, suggesting that the stock is undervalued. On the other hand, a high PTB ratio may indicate that the stock is overvalued compared to its tangible assets.

The formula to calculate PTB ratio is:

PTB ratio = Market price per share / Tangible book value per share

The market price per share is the current stock price of the company in the market. The tangible book value per share is the company's book value minus any intangible assets, divided by the number of shares outstanding.

The PTB ratio is just one of many financial ratios that investors can use to evaluate a company's stock. It is important to consider other factors such as earnings, dividends, debt, and cash flows in addition to the PTB ratio when making investment decisions.

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