Stock Investing for Beginners | Book Value Calculation | Price to Book Value Explained

Описание: What is book value ? What is price ot book value ratio? How to analyze the P/B ratio?

Book value of a company is the net assets value calculated by taking total assets minus the intangible assets and liabilities.
Book value per share simply taking the book value divide by the number of share outstanding of a company.
Price to Book value ratio is the ratio between the price per share and book value per share.

In this video, we will fully explained and interpret the price to book value ratio to let you fully master this ratio.
A good price to book ratio indicate the stock price in the market is now undervalue as the book value is higher than the price of the stock.
A high price to book ratio also indicate the price now is overvalued.

Warren Buffett likes the price to book ratio of 0.5 if possible to ensure a margin of safety in his investment.


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