Question

Which of the three valuation methods discussed is driven by traders and can suffer from a “herd mentality”?

Answer 1

❤ Hello Mate ❤

» 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 .

Hope it helps you

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