Regarding my question before, if the P/E Ratio is lower, then, the "Market to Book Value" will get lower too. For example, total book value in 2015 equal to $158. To calculate Market to book value, market price divide with total book value. In 2015: 0.2/158= 0.0126 (market to book value) May I know, is that okay to get that kind of answer for "market to book ratio"?
Regarding my question before, if the P/E Ratio is lower, then, the "Market to Book Value" will get lower too. For example, total book value in 2015 equal to $158. To calculate Market to book value, market price divide with total book value. In 2015: 0.2/158= 0.0126 (market to book value) May I know, is that okay to get that kind of answer for "market to book ratio"?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Regarding my question before, if the P/E Ratio is lower, then, the "Market to Book Value" will get lower too.
For example, total book value in 2015 equal to $158. To calculate Market to book value, market price divide with total book value.
In 2015:
0.2/158= 0.0126 (market to book value)
May I know, is that okay to get that kind of answer for "market to book ratio"?
Transcribed Image Text:O ANSWERED
Wednesday, May 05, 2021
BUSINESS • FINANCE
Is it possible to have P/E Ratio at the
lower value (referring to the picture)? For
example in 2015, if calculate it, I will get
0.2. Should I write it as "0.2 times"? I doesn't
make sense for me. If the answer is 0.2,
then is it correct to write the answer as "0.2
times"? Or this is wrong? I am confused.
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