5 Low Price-to-Book Stocks Worth Adding to Your Portfolio

In value analysis, though price-to-earnings (P/E) and price-to-sales (P/S) ratios are most preferred by investors, the underrated price-to-book ratio (P/B ratio) is also an easy-to-use valuation tool for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book value.The P/B ratio is calculated as below:P/B ratio = market price per share/book value of equity per shareP/B ratio reflects how many times book value investors are ready to pay fo ...