Saturday, February 25, 2017

Price to Book Value Ratio Calculator

Happy Investor Frog Explains Price to Book Value Calculation
Happy Investor Frog Explains Price to Book Value Calculation


Meaning/ Definition:

‘Price to Book Value (P2BV)’ is a measure of the number of times the book value of a share is trading at in the stock market. The ratio or proportion is obtained by dividing the ‘Current Market Price (CMP)’ of the share by its book value.


Significance:

Price to Book Value is the second most important metric in determining the fair price of a share, the first being ‘Price to Earnings (PE) Ratio. If the price is less than the book value it is a good bargain. Maximum recommended is 1.5 times, beyond which the price is not fair or reasonable.

Calculator:



Further Reading:

Friday, February 24, 2017

Book Value Per Share Calculator


Picture Shows Happy Frog Dreaming About Book Value Per Share
Picture Shows Happy Frog Dreaming About Book Value Per Share