Filter Stocks by Fundamentals
Select Equity |
Price to Book In A Nutshell
As with many ratios that pertain to the fundamental aspect of a company, the lower the ratio is could be there is value to be had. However, you need to be aware because a lower price to book ratio could also be an indication there is a fundamental issue at hand that needs to be addressed.
Price to Book is a widely used ratio and is used to compare market value to book value, giving you a ratio that can be compared against others in the industry. Learning the different ratios that look at the fundamental health of a company is key, because they are used in various reports.
Closer Look at Price to Book
The first part of the equation is market price and this can be looked at in just about any manner. Market price could just be simply left at that while you figure this equation, but if you know the market price is down you can figure out why and that can help you in understand this ratio better. The second value of the equation is book value and that is straight forward. It is important to know how an equation works because if something seems off, you need to be able to pick it apart and find out why.
With that, be sure to begin implementing this new study into your current setup slowly and see if it brings you value. Search the Internet and see how other people are using this and find ways to have it bring more value. Also, join an investing or trading community, as this is one of the best ways to get real time feedback and converse with people who are actively participating in the market. Lastly, if you have hired an investing professional, consult with them and they would be more than happy to walk with you through an explanation and example. Price to book is a wonderful data point to help guide you in the right direction and it should certainly be added the toolbox of your investing knowledge.
All Fundamental Indicators
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectOther Consideration for investing
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |