Book cost offers a useful benchmark in the Price to Book ratio, because. e book value includes the accrued retained salary for the firm.
The book-to-market ratio compares a company's e book fee to its market value. The book cost is the price of belongings minus the fee of the liabilities. The market cost of a organisation is the market charge of one of its shares multiplied by using the variety of shares outstanding.
The rate to e book ratio (P/B) is calculated by dividing a company's market capitalization through its book cost of fairness as of the state-of-the-art reporting period. Or, alternatively, the P/B ratio can also be calculated through dividing the contemporary closing share charge of the organization through its most latest e book value per share.
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