market to book

market to book definition - business

market to book

A ratio comparing the market price of a firm's common stock with the stock's book value per share. Essentially, the market-to-book ratio relates what investors believe a firm is worth to what the firm's accountants say it is worth according to accepted accounting principles. Also called price/book ratio, price-to-book-value ratio.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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