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put (money) into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.
For investors paying for each dollar of a company's earnings, the P/E ratio is a significant indicator, but the price-to-book ratio (P/B) is also a reliable indication of how much investors are willing to spend on each dollar of company assets. In the process of the P/B ratio, the share price of a stock is divided by its net assets; any intangibles, such as goodwill, are not taken into account. It is a crucial factor of the price-to-book ratio, due to it indicating the actual payment for tangible assets and not the more difficult valuation, of intangibles. Accordingly, the P/B could be considered a comparatively, conservative metric.

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Joined APSense since, December 25th, 2014, From hyderabad, Pakistan.

Created on Apr 6th 2017 04:46. Viewed 460 times.


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