Question

what are p/b and p/e ratio in share market? ​

Answer 1

Answer:

here is your answer

Explanation:

price to earnings is a ratio is a measure of the valuation of a company stock ...... the price to book ratio compares the price of the stock with its book (accounting value) . the higher the pb ratio , more expensive is the stock abd vice versa

Answer 2

In Accounting and Finance,the pb ratio is termed as "price to book" ratio which is used to compare the price of a company stock with its actual book value of accounting value.The pe ratio or the "price to earning" ratio evaluates the  current value of the company stock in the market.

Explanation:

The pe ratio basically indicates the ratio of any stock price and earnings generated from selling the stock in the market.Usually in pe ratio,the price is located in the top or numerator and the earnings in the denominator indicating that as the stock price increases or the earnings decreases,the pe ratio increases and vise versa.

The pb ratio compares the price of the stock and its actual book or accounting value.As the pb ratio increases,the market price of the stock also increases and vise versa.The pb ratio is predominantly used by commercial banks but not so much by asset held companies or business organizations.