easy · Financial Accounting financial-statement-analysis-ratios

A Price-to-Book (P/B) ratio of less than 1.0 typically suggests that:

  1. The market values the firm's equity at less than its accounting net assets
  2. The firm is highly profitable
  3. The firm has no debt in its capital structure
  4. The market expects the firm to earn a return above its cost of equity

Sign up free to see the explanation and track your rank →

More Financial Accounting financial-statement-analysis-ratios practice

KomFi Academy — Stop doomscrolling. Get KomFi.

Build your intelligence, anytime, anywhere.

KomFi Academy is a curated training platform with 46,000+ practice questions, 20,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks across the topics serious professionals study: GMAT, LSAT, MCAT, Investment Banking, Private Equity (LBOs & PE math), Private Credit, Quantitative Finance, Financial Accounting, Asset- Backed Securities, Volume Profile Analysis, Order Flow Trading, Market Microstructure, Volume Spread Analysis, Elliott Wave Theory, Volume-Price Analysis, and Public Offering Frameworks.

What's inside

Topics

View pricing · Read testimonials