Book To Market Ratio
The book-to-market ratio (B/M) is the ratio of a company’s book value of equity to its market value of equity (market capitalization). It can also be expressed on a per-share basis as book value per share divided by price per share.
Example: For Company X, the book value of equity is $400 million and the market value of equity is $800 million, giving a book-to-market ratio of 0.50.
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