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Market P/Bo Ratio & Justified P/Bo Ratio

January 4, 2016

P/B ratio = market value of equity / book value of equity

= market price per share / book value per share

P0/Bo = (ROE – g) / (r – g)

or

Po/Bo = 1 + (ROE – r) / (r – g)

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From → Asset Valuation

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