Price-to-Book Ratio (P/B)
The price-to-book ratio compares a stock's market price with the accounting value of shareholders' equity per share. It indicates how much the market pays for each unit of net assets recorded on the balance sheet.
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Price-to-Earnings Ratio (P/E)
The price-to-earnings ratio compares a stock's share price with the company's earnings per share. It shows how many units of currency the market currently pays for one unit of annual earnings.