Which of the three valuation methods discussed is driven by traders and can suffer from a "herd mentality"?
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To get the P/B ratio, take the current price of the share and divide by the book value per share. For example, if a share currently costs $60 and the book value per share is $10, the P/B ratio is 6.
The book value of a stock is the price of the stock in the company's balance books.
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