Market-to-Book Ratio

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The Market-to-Book Ratio, also known as the market to book ratio, is a financial metric that compares a company’s current market value to its book value. It is calculated by dividing the market capitalization by the book value of equity. This ratio provides insights into how investors perceive the company’s growth potential relative to its accounting value. A higher market to book ratio indicates that the market values the company more than its book value.

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