5 Low Price-to-Book Stocks to Buy as 2025 Comes to a Close
Value investors have, over the years, preferred the price-to-earnings ratio or P/E, as a means to identify value stocks. However, in the case of loss-making companies that have a negative price-to-earnings ratio, the price-to-sales or P/S ratio is considered in determining their true value.
However, the price-to-book ratio (P/B ratio), though used less often, is also an easy-to-use valuation tool for identifying low-priced stocks with great returns.
The P/B ratio is calculated as below:
P/B ratio = market capitalization/book value of equity
The P/B ratio helps identify low-priced stocks with high growth prospects. Here we discuss five stocks with a low P/B ratio and a “Buy” recommendation as 2025 comes to a close. The…
