Exchange Currency

book to market ratio

A stock's book value divided by its market value. Book value is calculated from the company's balance sheet, while market value is based on the price of its stock. A ratio above 1 indicates a potentially undervalued stock, while a ratio below 1 indicates a potentially overvalued stock. Technology companies and other companies in industries which do not have a lot of physical assets tend to have low book to market ratios.

Related information about book to market ratio:
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  6. Is There Still Value in the Book-to-Market Ratio?
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  7. What Is Book-To-Market Ratio?
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  8. How to Calculate Book-to-Market Ratio in the Stock Market | eHow ...
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