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When viewed over long periods share prices is directly related to the earnings and dividends of the firm.In US, a share must be priced at a $1.00 or more to be covered by the NASDAQ.If the stock fall below that level the stock is delisted.
Book value per share is easily calculated by subtracting liabilities and the par value of an outstanding preferred stock from assets and dividing the remainder by the outstanding shares of stock.
Book value per share is easily calculated by subtracting liabilities and the par value of an outstanding preferred stock from assets and dividing the remainder by the outstanding shares of stock.
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voted helpful: davepamn
-quote-
"You calculate the P/B by taking the current price per share and dividing by the book value per share.
P/B = Share Price / Book Value Per Share
Like the P/E, the lower the P/B, the better the value. Value investors would use a low P/B is stock screens, for instance, to identify potential candidates. "
-end of quote-
"You calculate the P/B by taking the current price per share and dividing by the book value per share.
P/B = Share Price / Book Value Per Share
Like the P/E, the lower the P/B, the better the value. Value investors would use a low P/B is stock screens, for instance, to identify potential candidates. "
-end of quote-
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