- What is Price to Book Value
- How to use Price to Book Value
- Tsupitero Features
Pop quiz. Which of these do you agree with?
- The true value of a company depends on how many market participant wants to buy that company.
- The true value of a company depends on its assets, earnings, and capability to grow.
If you agreed on the first one, there is a high chance that you are a trader. While if you agreed on the second, perhaps you are more of an investor. Price to Book Value is one of the most widely used indicators by investors.
Read along! In this tsupitero blog, we will define and discuss how to use Price to Book Value in creating choices for you.
What is Price to Book Value
A price to book value is one of the many indicators that suggest if a company is undervalued. Typically, an undervalued stock has a P/B Value of less than one. The formula for calculating P/B Value is:
P/B Value = Market Value Per Share / Book Value Per Share
How to use Price to Book Value
Price to Book Value is a ratio that tells if a company is undervalued. Ideally, opportunity can be found on undervalued companies. These are the companies with P/B value of less than 1.
Tsupitero Basic Feature
In Tsupitero Basic Feature of Price to Book Value, the daunting task of calculating the value for 300+ listed companies is now one click away. In this Feature, you can see in ascending order the Price to Book value of each company listed in Philippine Stocks Exchange. And oh! You can also filter the results by category. Yep! Awesome!
Now, you have choices, to begin with. The actual step in using this tsupitero feature can be found below.
In Tsupitero Premium Feature of Price to Earnings Ratio, you can be notified thru Tsupitero Mobile App when a company in your watchlist has changed in ranking. Do you have any suggestions in your mind? Comment below! There are many benefits of a premium user, be sure to read other blogs to learn more. Register Today!