Market value of equity is calculated by multiplying stock price by outstanding shares. Book value, derived from balance sheet equity, offers a less volatile valuation. Market values may include ...

Calculate P/B ratio by dividing stock price by book value per share. A lower P/B ratio may suggest a stock is undervalued; watch for very low ratios. Use P/B ratio to analyze banks and other ...

When you buy stock in a company, you’re buying an equity stake. The value of that equity stake will change over time: growing and shrinking in tandem with company performance. Much of this is ...

Bryn Harman, CFA, has 40+ years of experience in corporate finance, including as CEO/CIO of value-oriented investing firm Pelouse Capital Management. In the food chain of corporate security investors, ...