n NISM Certifications
NSM General NISM
Medium

What is the formula for the Price-to-Book (PB) ratio?

Practice question from Advanced B1 S4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Earnings Per Share ÷ Book Value per Share

  2. B

    Market Price per Share ÷ Earnings Per Share

  3. C

    Book Value per Share ÷ Market Price per Share

  4. Market Price per Share ÷ Book Value per Share

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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