In finance, the price-to-book ratio (P/B ratio) is a ratio used to compare a company's current market price to its book value. The book value is essentially the tangible assets of a company minus its liabilities. The P/B ratio is used to find special situations, where a company is trading below its book value. This can be due to a variety of reasons, such as the market overreacting to bad news or the company being in a turnaround situation. Either way, the P/B ratio is a useful tool for finding potential investments. Episode Outline (00:00) Introduction (01:17) The Definition of Price to Book (06:24) Sum of The Parts (09:26) Discrepancy (13:20) Market Cap (16:31) Conclusion Value Investor Chatter Facebook: https://web.facebook.com/valueinvestor49 Twitter: https://twitter.com/valueinvestor49 TikTok: https://www.tiktok.com/@valueinvestor49 LinkedIn: https://www.linkedin.com/company/valueinvestor49/ Website: https://valueinvestor.org/