Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Please Wait...
Let's discuss a fundamental concept in finance - the price/book ratio. This term is used to measure the value of a fund by taking into consideration the price/book ratios of all the stocks in its portfolio. But what exactly is book value? It is the net worth of a company, calculated by subtracting its total liabilities from its total assets. To calculate the price/book ratio, we divide a company's market price by its book value. Keep in mind that stocks with negative book values are not included in this calculation.