Price to Book AnalysisPrice 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.
About Price to BookPrice 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.
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Based on latest financial disclosure the price to book indicator of PowerShares SP 500 Quality ETF is roughly 5.6 times. This is much higher than that of the Invesco PowerShares family, and significantly higher than that of Size and Style category, The Price to Book for all etfs is over 1000% lower than the firm.
PowerShares SP 500 Fundamental Drivers Relationships2.84 of Price to Book per Price to Sales.
The fund invests 100.0% of asset under management in tradable equity instruments, with the rest of investments concentrated in .