P/B Ratio in Stock Market Explained (Price-to-Book Tutorial)

To calculate P/B ratio or (Price-to-Book ratio) you simply take the current price of a stock and divide it by the total tangible assets minus liabilities divided by the number of shares outstanding. A P/B ratio compares the price to the net worth of a company to provide some insight into how much of a multiple investors are currently willing to pay in relation to the book value per share. In this video I discuss what different values may mean in the ratio and some of the upsides and downsides to using this metric for fundamental analysis. I talk about bankruptcy and liquidation scenarios as well. If you enjoy this type of content, make sure to let me know in the comments.

**I am not a financial advisor or crypto advisor; this video is meant to be used for entertainment purposes only and represents only my personal opinions**

Sources: Investopedia, Personal Experience

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