The financial encyclopedia uses cookies to improve your user experience. Find out more here!


       

 

Market to book ratio
 

 

 

The book-to-market ratio is a ratio used to find the value of a company by comparing the book value of a firm to its market value. Book value is calculated by looking at the firm's historical cost, or accounting value. Market value is determined in the stock market through its market capitalization.

Reference: investiopedia.com