What is the best range of price to book ratio?

The price-to-book ratio refers to the ratio of stock price per share to net assets, which is essentially gold. Therefore:

1. Theoretically speaking, less than 1:1 is a discount transaction, and the lower the price, the more cost-effective, so the stock price falling below the net assets often indicates that the adjustment has reached a low level.

2. Of course, most of the stock prices are traded at a premium above the net assets, which depends on whether the growth of the stock is excellent, and the price-to-book ratio will decline quickly if the growth is good, that is, it has medium and long-term investment value.

The price-to-book ratio refers to the ratio of the stock price per share to the net assets per share. The price-to-book ratio can be used for investment analysis, generally speaking, the lower the price-to-book ratio**, the higher the investment value, and conversely, the lower the investment value; However, when judging the value of the investment, it is also necessary to consider the market environment at that time, the company's operating conditions, profitability and other factors.

The investment community often promotes the price-to-earnings ratio in a bull market, and in a bear market, everyone likes to use the price-to-book ratio to pick stocks. The reason is very simple, in the bull market, everyone looks up, the P/E ratio provides the market with unlimited imagination, the static P/E ratio does not work, the dynamic P/E ratio is not good, and the P/E ratio can be launched next year and the year after tomorrow"set"to the right reason. When it comes to a bear market, everyone looks at the bottom, and the price-to-book ratio often serves as an indicator for everyone to find the bottom.

In 2005, when the historical bottom of 998 points, the level of a** net ratio was about double, and when ** rushed to 6124 points, the price-to-book ratio reached double.

In a bear market, investors are happy to use the price-to-book ratio indicator, because this indicator can better reflect the best margin of safety, investors can first assume that the listed company will stop production under the most pessimistic scenario, and investors can realize according to net assets. For investors, according to the price-to-book ratio stock selection criteria, the lower the price-to-book ratio, the lower the risk factor.

The net assets of listed companies should also be specifically analyzed, some of which can help enterprises continue to operate and create profits, while some of which may be purely broken and rotten. For financial and ** assets with a large proportion, the price-to-book ratio level cannot be given too high, because these assets have already experienced once in the ** market"Amplification effect"Finish. In a bear market"Breaking"The industry is mainly concentrated in steel, textile, real estate and other industries, which are facing the danger of recession in the business cycle.

At the end of a bear market, a large number of ** will fall below net worth. If one or two ** such a phenomenon exists, it can be regarded as an accidental factor and needs to be viewed with a dynamic eye. But if it is such a large group, it should be taken seriously enough, which means that the market opportunities may start to appear.

The price-to-book ratio refers to the ratio between the market price and the net assets per share, and the price-to-book ratio below 1 indicates that the stock price is very low, which is lower than the net assets per share. However, the low price-to-book ratio often has to be distinguished from the industry, such as the steel industry, the price-to-book ratio is generally lower than 1, and the high-tech industry has a high price-to-book ratio.

The price-to-book ratio is calculated as: price-to-book ratio = (p bv) i.e. per ** price (p) net assets per share (book

value)

**Net value is: the total of the company's capital, capital reserve, capital community chest, statutory provident fund, arbitrary provident fund, undistributed surplus and other items, which represents the rights and interests enjoyed by all shareholders, also known as net assets. The amount of net assets is determined by the operating conditions of the joint-stock company, the better the operating performance of the joint-stock company, the faster its assets will appreciate, the higher the net worth, and therefore the more equity the shareholders have.

The lower the price-to-book ratio, the better, so that the risk faced by the investment is lower, and the probability of the later occurrence is relatively large. Generally speaking, the price-to-book ratio is generally between 3-10, which is a reasonable range. When investing in listed companies, the price-to-book ratio is a must for many users to analyze.

In fact, the P/B ratio is mainly aimed at mature industries and recessionary industries, and the value of P/B ratios varies from industry to industry. For example, in the banking industry, the price-to-book ratio is within a multiple; The price-to-book ratio of the home-applied-based manufacturing industry is less than 2 times; In the steel-based building materials industry, the price-to-book ratio is usually less than 1 times.

Hello, dear and dear, I am happy to answer for you, the price-to-book ratio is a measure of whether the **** is reasonable, it is the ratio of the market value of Zifan company to its net assets. The lower the price-to-book ratio, the more undervalued the company's market capitalization, probably because the market is pessimistic about the company's future prospects. Conversely, the higher the price-to-book ratio, the more optimistic the market is about the company's future development prospects.

The reasonable range of price-to-book ratios varies from industry to industry and from company to company. Generally speaking, a price-to-book ratio below 1 is considered to be a value investment, while a price-to-book ratio above 3 is considered to be a growth investment. In some specific cases, companies with a price-to-book ratio of 5 or below may also have investment value, but more detailed research and analysis are required.

In short, the price-to-book ratio is not a fixed standard value, but needs to be analyzed on a case-by-case basis. When making investment decisions, it is necessary to comprehensively consider the company's financial status, development prospects, industry competitiveness and other factors, rather than just looking at the price-to-book ratio.

The price-to-book ratio is mature ** and the general price-to-book ratio can be seen as reasonable below.

The price-to-book ratio is **** divided by the net assets per share of the stock. In the mature ** general price-to-book ratio can be seen as reasonable below, except for the new economy of Internet stocks and technology stocks and other similar **, because in the past in the crazy speculation of Internet stocks, there was a concept of market dream ratio, at that time Internet stocks according to the price-to-book ratio as high as dozens or even hundreds.

The price-to-book ratio is calculated as follows: price-to-book ratio = market price of shares and net assets per share.

The price-to-book ratio is not suitable for speculation, improving profitability.

The price-to-book ratio is an important indicator to measure the financial status of a company, which can reflect the company's financial status and future development prospects. So, what kind of price-to-book ratio is good?

What is the price-to-book ratio?

The price-to-book ratio refers to the ratio of a company's market capitalization to its net assets, also known as the net worth ratio, which is an important indicator to measure a company's financial status. It can reflect the company's financial position and future development prospects.

The formula for calculating the price-to-book ratio is: price-to-book ratio = market capitalization and net assets.

A reference standard for the price-to-book ratio.

The price-to-book ratio is an important indicator to measure a company's financial health, but it is not a measure, and there are many other indicators, such as operating income, profit margin, asset-liability ratio, etc.

Generally speaking, the higher the price-to-book ratio, the better the company's financial position and future development prospects. However, the reference standard of price-to-book ratio is different for different industries, for example, the price-to-book ratio of the banking industry is generally between 2-3, while the price-to-book ratio of the manufacturing industry is generally between 2-3.

Advantages of price-to-book ratio.

The price-to-book ratio is an important indicator of a company's financial health, and it has many advantages:

First of all, it can reflect the company's financial status, which can help investors better judge the company's financial status and thus invest better.

Secondly, it can reflect the company's future development prospects, which can help investors better judge the company's future development prospects, so as to better invest.

It can help investors better grasp investment opportunities and thus obtain higher prices.

Disadvantages of the price-to-book ratio.

There are also some disadvantages to the price-to-book ratio:

First of all, it can only reflect the company's financial status, not the company's operating conditions, so investors cannot judge the company's operating conditions based on the price-to-book ratio alone.

Second, it can only reflect the company's future development prospects, not the company's future development trend, so investors cannot judge the company's future development trend based on the price-to-book ratio alone.

It can only help investors grasp investment opportunities, but not investment risks, so investors cannot grasp investment risks based on the price-to-book ratio alone.

In general, the higher the price-to-book ratio, the better the company's financial situation and future development prospects, but investors can not judge the company's financial status and future development prospects based on the price-to-book ratio alone, but also need to combine other indicators such as operating income, profit margin, asset-liability ratio, etc., in order to better judge the financial status and future development prospects of the company.