Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is accounting value of assets minus liabilities.
John
P/B
=
MV Per Share
BV Per Share
=
1.06 times
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Based on latest financial disclosure the price to book indicator of John Hancock Income Securities Trust is roughly 1.06 times. This is 85.15% lower than that of Financial sector, and 4.95% higher than that of Closed-End Fund - Debt industry, The Price to Book for all stocks is 81.82% higher than the company.
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